Strong market position in residential development and commercial leasing in Hong Kong. Strong recurring income from large leasing portfolio. Reduced margins because of higher land costs. Pressure from slowdown in Hong Kong's property market and large investments in mainland China. Prudent financial management with disciplined land acquisitions. Consistently strong liquidity. Good rental income interest coverage. Potential leverage pressure from volatility of property markets. The stable outlook on Sun Hung Kai Properties Ltd. (SHKP) reflects our expectation that the company will continue its strong execution and achieve steady contracted sales over the next 12 to 24 months. We expect SHKP's recurring income base to continue growing, particularly from its increasingly established portfolio in China, and provide stability to the company's credit
