CLSA released a research report noting that SHK PPT (00016) reported a 16.7% year-on-year increase in underlying net profit to HK$12.2 billion for the first half of the 2026 fiscal year. This growth was driven by higher profit contributions from property sales in China, which partially offset declines in profit contributions from property sales and rentals in Hong Kong. The interim dividend of HK$0.98, representing a 3.2% increase, was a positive surprise. The firm raised its target price for SHK PPT from HK$110 to HK$148, maintaining an Outperform rating.

The report indicated a favorable profit outlook for the next 12 months, supported by the completion of high-margin projects. Assuming sales of high-margin inventory can compensate for any shortfall from completed projects, CLSA forecasts net profit growth of 10.2% and 2.6% for the 2027 and 2028 fiscal years, respectively.

Given improved market sentiment, the firm narrowed its net asset value discount from 48% to 30%, aligning with the long-term average since 1997. This adjustment reflects the expectation that Hong Kong developers may revert to average levels as the market returns to a normal cycle.