Sun Hung Kai Properties

What the broker says...

PUBLISHED : Sunday, 29 September, 2002, 12:00am
UPDATED : Sunday, 29 September, 2002, 12:00am

Hong Kong-based Sun Hung Kai Properties (SHKP) specialises in the development of and investment in properties for sale and rent.

SHKP recently announced that its earnings increased 2 per cent to HK$8.5 billion, which was in line with analysts expectations.

Pre-tax contribution from the group's property development division reached HK$4.8 billion, due mainly to the contribution from its Leighton Hill project.

According to a recent report by KGI Asia, SHKP will suffer less from the present property price war because of its successful sales strategy and premium brand name.

However, with the declined profit margin, contribution from the property development income was expected to decline to HK$3.1 billion next year, KGI said.

'Hence, we expect their earnings for the coming year to remain flat.'

KGI recommends a 'trading buy' on the counter when it returns to the HK$46 level.

Graphic: THEN29gwz