JP Morgan released a research report stating that SHK PPT's (00016) profit for the first half of the 2026 fiscal year increased by 17% year-on-year, significantly surpassing the bank's projected growth of 4%. This outperformance was primarily driven by profits from development properties in Mainland China far exceeding expectations. The bank assigned an Overweight rating to SHK PPT with a target price of HK$162.

For the first time in three years, SHK PPT increased its interim dividend by 3%, an action interpreted as demonstrating management's confidence. The net gearing ratio also improved further, decreasing from 15.1% to 13.5%.

With the profit margin for Hong Kong development properties likely to rebound from 8% to a mid-teens percentage level, the bank anticipates SHK PPT can achieve a compound annual growth rate of 6% in earnings over the next three years. The report notes potential upside risk to earnings if sales momentum proves stronger than expected.

Among the numerous Hong Kong property developers, the bank considers that SHK PPT offers the clearest earnings growth outlook. This factor, combined with its ample salable resources, positions the company to capitalize on market recovery opportunities. These strengths are expected to continue supporting its valuation premium due to its scarcity value.

The bank believes the Hong Kong residential market has transitioned from an "early recovery" phase to an "expansion phase." Consequently, it expects the discount to SHK PPT's net asset value per share to gradually narrow from the current 34% to 22%.