Morgan Stanley released a research report stating that SHK PPT (00016) recorded flat full-year earnings per share with dividends meeting expectations. The dividend payout ratio was maintained at 50%, implying a dividend yield of 4.1%. The company's management is currently not considering share buybacks or establishing a C-REIT. The firm has set a target price of HK$102.3 for SHK PPT based on a sum-of-the-parts valuation, representing a 50% discount to net asset value per share, with an "Overweight" rating.

On the business front, local property development recorded full-year contract sales of HK$42.3 billion compared to HK$25.6 billion in the same period last year, with the group targeting HK$30 billion for fiscal year 2026. The firm expects SHK PPT to record over HK$30 billion in unbooked sales for fiscal year 2026 with similar profit margin levels.

Additionally, while rental renewals recorded negative growth, the company maintains a constructive outlook on Hong Kong's office and retail market prospects. For fiscal years 2026 to 2027, investment property income is expected to increase significantly from the Kowloon High-Speed Rail Station superstructure IGC and Shanghai Xujiahui Center (ITC).

SHK PPT's net debt ratio also decreased from 17.8% in the first half of fiscal year 2025 to 15.1% for the full year. Benefiting from increased allocation to RMB and HKD floating rate debt, financing costs declined from 4.4% in the same period last year to 3.7%.