J.P. Morgan: LINK REIT (00823) is the top choice in Hong Kong's Real Estate Industry, while avoiding WHARF REIC (01997).
Overall, the performance may be mediocre, but the guidance regarding capital circulation (such as land use, Swire, and Link REIT) may be a highlight, while also paying attention to the possible improvement in Luxury Goods retail sales in the mainland that may occur in the second quarter (related to HANG LUNG PPT).
Bank of America Securities: The impact of sentiment in the Residence market is manageable. It is expected that CKH HOLDINGS (01113) and CKH HOLDINGS (00001) will reduce their annual dividends.
Bullish on SWIREPROPERTIES (01972) and LINK REIT (00823), believing they have a sustainable high dividend yield.
[Brokerage Golden Stocks] Brokerages indicate that the upward trend of Hong Kong stocks remains strong and the list of golden stocks for February has been released (with list attached).
Jinwu Finance | Looking back at January, the Hong Kong stock market successfully outperformed the A-shares, with the Hang Seng Index rising 0.8% in January and the Hang Seng TECH Index rising 5.7%. In contrast, the SSE Composite Index fell 3% while the Chinext Price Index decreased by 3.6%. Moving to February, during the Spring Festival, Trump imposed a 25% tariff on Mexico and Canada and an additional 10% tariff on China, but then announced a one-month delay for the tariffs on Mexico on the evening of February 3. The unpredictability of the Trump administration's tariff policies has created uncertainty in the market. Since February, U.S. stocks have shown fluctuating performance, but the Hong Kong stocks have remained unaffected, with U.S. Treasury yields stabilizing and AI companies like DeepSeek emerging.
Morgan Stanley: Expect a 5% decline in Hong Kong retail sales in 2025, preference for related Property/A-REIT stocks, particularly LINK REIT (00823).
The action is to rate Link REIT as "Shareholding", while maintaining "Shareholding" for WHARF REIC and Hysan Development.
[Brokerage Focus] Morgan Stanley expects a 5% decline in Hong Kong's retail sales in 2025, with the depreciation of the renminbi potentially offsetting the positive effects of "multiple entries with one visa".
Jinwu Financial News | Morgan Stanley's research report indicates that Hong Kong's retail sales recorded a year-on-year decline of about 10% in December, worse than November's 7%, despite Shenzhen opening up the "one signature multiple trips" policy. Morgan Stanley predicts a decrease of 5% in Hong Kong's retail sales in 2025, believing that yuan depreciation and a weak Hong Kong economy will offset the positive effects of the "one signature multiple trips" policy. It prefers LINK REIT (00823) among others. Morgan Stanley points out that retail-related property stocks like WHARF REIC (01997), LINK, and HYSAN DEV (00014) could underperform the Hang Seng Index by 42-43 percentage points in 2024, as of the beginning of 2025.
BOCOM INTL: The Hong Kong stock market is entering a recovery phase. The top choice for the rate cut theme is LINK REIT (00823) with a Target Price of HKD 47.70.
The high elasticity growth Sector is expected to be the first to benefit from the dual drivers of liquidity easing and increased domestic demand policies, while also being driven by prosperity growth and industrial trends.
