The analyst rating for SHK PPT (00016.HK) is maintained as "Outperform" due to several positive factors highlighted in the report. The company delivered a 16.7% year-over-year increase in underlying net profit, attributed to front-loaded property sales profit booking in China, which helped offset declines in profit contributions from property sales and leasing in Hong Kong. Additionally, the interim dividend per share (DPS) of HKD0.98, representing a 3.2% year-over-year rise, was seen as a pleasant surprise.
The earnings outlook for the next 12 months is positive, driven by the completion of high-margin projects. The broker anticipates that sales of high-margin inventory will compensate for any shortfall in completed projects, projecting net profit increases of 10.2% and 2.6% year-over-year for FY27 and FY28, respectively. Consequently, the target price for SHK PPT was raised from HKD110 to HKD148, reinforcing the positive outlook and the "Outperform" rating.
