The stable outlook on SHKP reflects our expectation that the company's debt leverage will increase over the next 12-24 months, reducing the rating buffer. Meanwhile, SHKP is likely to continue its strong execution and achieve steady contracted sales over the period. We expect SHKP's recurring income base to continue to grow, particularly from its portfolio in China, and provide stability to the company's credit profile. SHKP's strong financial flexibility and conservative financial management should support satisfactory sales performance and keep leverage under control. We may lower the rating if: (1) Hong Kong's real estate sector worsens sharply and SHKP adopts a more aggressive land replenishment strategy, such that its ratio of debt to EBITDA exceeds 3x on a sustained basis
