[ET Net News Agency, 6 November 2019] CLSA cut its target price for Kerry Properties
(00683) to HK$25.5 from HK$30 and maintained its "underperform" rating.
The research house said Kerry Properties' China portfolio contributes 62% of its GAV
(Gross Asset Value). Stripping out the development businesses, rental income in China is
at least three times higher versus Hong Kong, allowing dividends to remain at 2018 levels.
However, high earnings volatility in HK's luxury residential market and a history of
dividends cuts are a concern, CLSA said.
It cut its 2019-20 earnings forecasts by 5.5%-17.5% to reflect declining rents and
slower property sales in Hong Kong. (KL)