Bank of America Securities: SHK PPT's Surprise Dividend Hike Signals Confidence, Target Price Raised to HK$145

Stock News
2 hours ago

Bank of America Securities released a research report stating that investors are expected to welcome SHK PPT's unexpected 3% increase in its interim dividend. Considering the company's maintained dividend payout ratio target of 40% to 50%, this move demonstrates management's confidence in an earnings recovery. Bank of America Securities raised its target price for SHK PPT from HK$134 to HK$145, an 8% increase, but reiterated a "Neutral" rating. The bank believes the stock's 44% year-to-date rise has largely reflected its stronger outlook. Based on higher projected margins for development properties, the institution raised its core profit forecast for SHK PPT for fiscal years 2027 to 2028 by 3% to 9%. It now anticipates a steady earnings recovery, reaching HK$260 billion by fiscal year 2028, equivalent to 85% to 90% of the levels seen in fiscal years 2021 to 2022.

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