Goldman Sachs assigns "buy" rating for SHKP

Sep. 17, 2009 (China Knowledge) - U.S.-based investment bank Goldman Sachs Group Inc recently assigned a "buy" rating for Sun Hung Kai Properties Ltd<0016>, raising the stock's target price by 1.7% to HK$120.

The brokerage said that Sun Hung Kai Properties' first-half results were within the range it forecast, and that the property developer's rental income beat its forecast.

Goldman Sachs also noted that Sun Hung Kai Properties' property brands have gained recognition in mainland China.

Sun Hung Kai Properties Tuesday said its net profit for the 12 months ended Jun. 30 decreased 62% from HK$ 27.60 billion a year ago to HK$10.36 billion, due to a loss from the revaluation of investment property.

Its underlying profit, excluding the effect of fair value changes on investment properties, rose 1.9% from a year earlier to HK$12.42 billion for the fiscal year on strong sales and rental income, the company said in a statement.

Hong Kong's biggest developer by market value said it is optimistic about Hong Kong's residential market and aims to sell 3,500 units, or HK$23 billion of residential properties, in the next fiscal year. It has already sold 850 units, or HK$3.7 billion of properties.