＜Research＞UBS Downgrades WHARF HOLDINGS (00004.HK) to Sell, Upgrades KERRY PPT (00683.HK) to Buy

　　UBS commented in a research report that most of the Hong Kong property stocks reached dividend yields of 7% to 10% in the latest round of dividend cycle, higher than the 6% for Singapore REIT's, reflecting buying opportunities. The broker believed that property developers may only be facing a cyclical downturn as strong residential rental growth indicated healthy supply and demand, and believed that property sales and prices will stabilise once US interest rates are cut. HENDERSON LAND (00012.HK) -0.050 (-0.225%) Short selling $10.91M; Ratio 27.530% and KERRY PPT (00683.HK) +0.260 (+1.937%) Short selling $749.43K; Ratio 3.893% are the broker's top picks, while SWIRE PACIFIC A (00019.HK) +0.900 (+1.323%) Short selling $16.36M; Ratio 31.424% is also favoured.

　　The broker saw a clear deleveraging roadmap for HLD, which is expected to benefit from the mass-market residential property market and accelerated sales of agricultural land. Meanwhile, KERRY is expected to benefit from sales of ultra-high-end luxury properties in Hong Kong.

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　　UBS upgraded KERRY from Neutral to Buy and raised its target price from $13.5 to $17.8. The broker also upgraded CHAMPION REIT (02778.HK) +0.010 (+0.629%) Short selling $249.27K; Ratio 31.605% from Sell to Neutral as the challenging profit outlook has been priced-in, but its target price was still lowered from $2.1 to $1.61.

　　Meanwhile, UBS downgraded WHARF HOLDINGS (00004.HK) -0.300 (-1.217%) Short selling $4.87M; Ratio 39.147% from Neutral to Sell, citing its expensive valuation, with target price trimmed from $20 to $16.3. The broker downrated HYSAN DEV (00014.HK) 0.000 (0.000%) Short selling $1.50M; Ratio 25.178% from Buy to Neutral due to the high risk of dividend reset after 2024, with target price chopped from $23.8 to $11.2.

　　UBS maintained a Neutral rating on CK ASSET (01113.HK) +0.050 (+0.169%) Short selling $26.00M; Ratio 21.189% and WHARF REIC (01997.HK) -0.260 (-1.337%) Short selling $11.32M; Ratio 20.031% , with the target price on CKA dropped from $40 to $31 and the target price on WHARF REIC lowered from $29.6 to $20.

　　Related NewsWHARF HOLDINGS Expects 1H24 Loss $2.5B-$2.8B; Revaluation Loss on Non-cash & Unrealised Items

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-26 16:25.)

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