UBS has released a research report stating that WHARF HOLDINGS (00004) reported underlying profit of HK$4.1 billion for the 2025 fiscal year, a 47% increase year-on-year, which largely aligns with UBS's expectations. The profit growth was primarily due to a reduction in impairment provisions related to mainland China development properties to HK$800 million (FY2024: HK$2 billion). UBS maintains a "Sell" rating on the stock with a target price of HK$16.3. By the end of 2025, following the realization of HK$9.7 billion in gains from its equity investment portfolio, WHARF HOLDINGS shifted to a net cash position of HK$2 billion, compared to a net debt of HK$7 billion in the 2024 fiscal year. After these disposals, the value of the equity investment portfolio remained flat year-on-year at HK$43.2 billion. The company announced it would maintain its second interim dividend at HK$0.2 per share, bringing the full-year dividend to HK$0.4 per share, implying a payout ratio of 30% (FY2024: 44%). During the earnings briefing, management expressed optimism regarding the Hong Kong luxury residential market and anticipated limited negative impact from the recent increase in stamp duty for luxury properties. WHARF HOLDINGS plans to launch sales for its No. 8 Long Ting Lane project in 2026. Concerning its mainland China development properties, management noted that despite lower average selling prices, inventory primarily consisting of office space remains difficult to sell, mainly due to weak market conditions.