Jinwu Financial News | According to HSBC Global Research and Development Report, Kerry E&C (00683)'s performance in 2023 was weak, mainly due to a decline in gross margin of real estate sales and a rise in interest expenses. The dividend per share remained unchanged at HK$1.35, and the dividend ratio was 10%.
According to the bank, Kerry E&C will make reducing the balance ratio a top priority at present, but the bank believes that despite improvements in related residential business, weak office leasing and real estate sales in mainland China may pose a threat to Kerry E&C's profit recovery.
The bank lowered the company's 2024 and 2025 profit estimates by 6% and 7.1%, and lowered the target price by 5% from HK$15.6 to HK$14.7. Some leasing businesses may have improved, but the bank is cautious about its overall real estate sales prospects, while maintaining a “hold” rating due to limited recent share price catalysts.