More 'good news' on HK-based wealth creation ... via e-mail
will the good news not end?! simply too wonderful.
Even better from Lehman this AM
Paul Louie had made a good call on HK property. In his latest 64-pages report, Paul is getting even more bullish - fundamentals are stronger than 1996-97. Compared with the 1996-97 cycle, HK now has: 1) a higher integration withmainland China and a larger pool of capital; 2) 48% fewer housing completions p.a. (avg 12,428 units in 2007-10 vs 23,919 units in 1996-99); 3) 10% higher private household income; & 4) a 50% reduction in mortgage rates fr 9.0% to 4.5%.
>>> Home prices to rise 45% by end-08E! We expect home prices in the next 15 months to rise another 45%. We believe that as negative real rates and asset appreciation become consensus view, NAV discounts should give way to premiums.
We raise our developers' share price targets by 24% on average. Our top picks in the developer space remain SHKP, Sino Land and Cheung Kong, all with 20%-plus potential upside. We have the highest numbers on the street, Pls let me know if I can send you the report.
Price Targets raised 24% on average
* Cheung Kong: HK$133.20 =>HK$158.00, raised 19%
* SHKP: HK$131.50 to HK$157.25, raised 20%
* Sino Land : HK$21.76=>HK$26.40, raised 21%
* Henderson Land : HK$50.10=>HK$61.70, raised 23%
* NWD: HK$17.60=>HK$24.65, raised 40%
* HLP: HK$17.60=>HK$21.90, raised 24%
* Wharf: HK$44.00=>HK$49.60, raised 13%
* Great Eagle: HK$35.80=>HK$40.00, raised 12%
* Hysan: HK$25.90=>HK$30.60, raised 18%
* HK Land : US$4.65=>US$5.35, raised 15%
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