According to a research report, Sun Hung Kai Properties Ltd. (SHK PPT) is positioned to benefit from the continued recovery in Hong Kong's residential property market. As the territory's largest property developer, the company holds a development land bank of approximately 19.1 million square feet, along with a substantial agricultural land reserve. This positions it favorably to capitalize on the accelerated development of the Northern Metropolis. Concurrently, its high-quality investment property portfolio continues to generate stable recurring income. DBS has set a target price of HK$146.3 for the stock and maintains a "Buy" rating.

The report notes that the profitability of Sun Hung Kai's development business is gradually improving alongside the ongoing recovery in Hong Kong residential prices. It is projected that as higher-margin projects are progressively recognized, the overall pre-tax development profit margin for its Hong Kong projects will recover to over 20% for fiscal years 2027 and 2028. This marks an increase from approximately 8% in the first half of fiscal 2026 and around 12% for the full fiscal year.