Citibank sets Sun Hung Kai Properties鈥� target price at HK$86.08

Sep. 15, 2009 (China Knowledge) - U.S.-based Citibank today said it will retain the rating of “sell” for Sun Hung Kai Properties<0016>, but raised the stock’s target price to HK$86.08 from the previous HK$75.33.

The lender projected  a 12% decline in Sun Hung Kai Properties' net profit for fiscal 2009.

Swiss investment bank UBS AG recently said that the property developer's full-year net profit of its core business may drop 2% to HK$12 billion, but that its Cullinan property project has helped increase its net profit in the second half of the year.

Sun Hung Kai Properties, Hong Kong’s largest property developer by market value, generated HK$16 billion in revenue from property development in the first half of the year. Of the properties currently under development, 39% are set to be finished after the end of fiscal 2009. The company is expected to gain HK$24 billion in revenue in fiscal 2010.

The company will release its interim financial report today. Thomson Reuters predicted that the real estate developer will report a net profit between HK$7.93 billion and HK$14.33 billion.