UBS Highlights Selective Strategy for Hong Kong Property Stocks, Favoring Low Debt and High Dividends

Stock News
02/13

UBS has issued a research report indicating that the Hong Kong property sector has started 2026 on a strong note, with several stocks approaching historical highs. As valuations appear increasingly expensive, even for some stocks on a price-to-book basis, the firm is adopting a more selective approach. UBS particularly favors stocks with relatively low net debt-to-equity ratios, such as SINO LAND (00083), CK ASSET (01113), and KERRY PPT (00683), citing lower risks related to equity issuance due to the sector's slow progress in deleveraging and continued need for capital to replenish land reserves. The firm also prefers stocks offering sustainable high dividends, including SWIRE PROPERTIES (01972), SINO LAND, and KERRY PPT. Additionally, stocks with low price-to-book ratios supported by capital recycling or share buyback programs, such as CK ASSET and LINK REIT (00823), may have opportunities for valuation re-rating. UBS believes the market has largely priced in positive factors for residential recovery, including further interest rate cuts, an influx of mainland talent and students, and reduced supply. However, the potential benefits from returning emigrants have not been fully recognized, supporting the firm's forecast of over 10% growth in property prices over the next two years. Between 2020 and 2025, approximately 321,000 Hong Kong residents applied for UK BNO visas, Taiwan residency, or Canada's Stream A student visas. With the UK tightening language and income requirements for permanent residency, UBS expects a wave of returnees this year. Assuming 30% of the 2021 emigrant group returns, estimated additional demand by 2027 would be 13,900 units, equivalent to 90% of primary supply and 26% of total supply. The firm anticipates that supply-demand conditions will remain favorable until 2032, before the completion of the Northern Metropolis project. UBS expresses a preference for SWIRE PROPERTIES, SINO LAND, LINK REIT, CK ASSET, and KERRY PPT in 2026, while maintaining a cautious stance on HENDERSON LAND (00012) (prior to earnings announcement), Hysan Development (00014), and MTR Corporation (00066).

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10