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<Research>Haitong Int'l: SHKP Annual Results Broadly In Line; New TP $90
Recommend 2 Positive 7 Negative 4 |
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Haitong International released a report on SHK PPT (00016.HK), of which core net profit for the year ended June faded 9% YoY, and the results were broadly in line. In view of the slowdown of its development property sales and bookings, the broker lowered its revenue forecast of the company for FY2025 and FY2026 by 9% and 2%, and net profit forecast for the same period by 9% and 4% each. The latest target price of $90 represented a 58% discount to the estimated NAV of $214, with a target dividend yield of 4.2%. The broker maintained its Outperform rating on SHKP, and pointed out that SHKP's net gearing ratio dropping from 21% to 18% was healthy. SHKP had a good record of a 40-50% underlying dividend payout ratio historically. The broker envisioned that SHKP will be able to maintain this dividend policy in the next few years. SHKP's profit from property sales faded 31% YoY, but its profit margin lost 10 ppts YoY to 26%, which was still reasonable compared to its peers in Hong Kong, while the profit margin of its investment properties remained stable in the last financial year, with recurring income touching a near-record high of $23.9 billion. The broker expected the company's investment property business to continue to underpin its results. AAStocks Financial News |
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