0822 GMT - Sun Hung Kai Properties' core earnings should recover as interest rates are expected to fall once the Fed embarks on its expected rate-cut cycle, OCBC Investment Research writes in a note. While the developer has been hurt by a spike in borrowing costs, its healthy financial position has helped it to weather uncertainties, OCBC says. "We expect a lower rates environment in Hong Kong to provide a boost to homebuyers' sentiment and this should help to support a recovery in property sales in a soft landing environment," OCBC says. The developer has plans to launch six new residential projects in Hong Kong over the next nine months, OCBC adds. OCBC has a buy rating on the stock and a fair value estimate of HK$93.10. Shares closed at HK$77.15. (amanda.lee@wsj.com)
(END) Dow Jones Newswires
September 12, 2024 04:22 ET (08:22 GMT)
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