...August 3, 2023 Contracted sales to rise. We expect Sun Hung Kai Properties Ltd.'s (SHKP) contracted sales in Hong Kong to reach HK$33 billion¡HK$35 billion in fiscal 2023 (year ending June 30, 2023), broadly in line with target of HK$35 billion. Rising interest rates have hurt Hong Kong's residential property market. However, the company could still benefit from its sufficient mass-market pipeline. Fiscal 2023 sales will be higher than the HK$30 billion in fiscal 2022. SHKP's sales in fiscal 2023 will be mainly from mass-market projects such as NOVO Land in Tuen Mun and University Hill in Pak Shek Kok. However, we expect sales from SHKP's luxury projects to be moderate. In fiscal 2024, SHKP's contracted sales could be further supported by new mass-market projects in Shap Sz Heung and Tin Shui Wai. Rental income could dip. This will be due to weakness in Hong Kong's office market and the depreciation of the renminbi in fiscal 2023. Stabilizing retail rents in Hong Kong could limit the impact....
