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Wharf REIC(1997): projects a 5% year-on-year increase in underlying net profit to HK$6.456 billion by 2025, with earnings per share of HK$2.02 to HK$2.13. Despite solid performance in its core business, the company recorded a net loss attributable to shareholders of HK$4.257 billion, dragged down by a significant impairment charge of HK$10.528 billion on investment properties. The total dividend for the year is HK$1.32 per share, maintaining the policy of paying 65% of the underlying profit from investment properties and hotels. Net asset value (NAV) per share decreased by 3% year-on-year to HK$59.85 due to asset valuation and market volatility. Looking ahead to 2026, although the Hong Kong retail market shows signs of improvement, geopolitical conflicts and global trade tensions remain major risks. While management's outlook on tenant sales is more positive than in previous years, the expected recovery in rental income is significantly delayed. Overall, the company will maintain a sound financial position with low leverage and cautiously seek development opportunities amidst a volatile global situation.
The Iranian conflict could push up oil prices and slow Asian exports
Brent crude oil prices briefly rose above $101 per barrel, driven by concerns over the closure of the Strait of Hormuz and supply disruptions. The market repriced inflation and the Federal Reserve's interest rate cut path, leading to higher US Treasury yields and putting pressure on growth and high-valuation sectors. In the Asia-Pacific region, investors are worried that global growth and funding costs will be simultaneously pressured. With oil prices remaining high and the situation in the Middle East uncertain, Asian exports may face energy shortages and slowdowns.
Hong Kong Stock Connect saw a net inflow of HK$11.28bn on Wednesday. The Tracker Fund of Hong Kong (2800) saw the largest inflow at HK$4.7bn, followed by CNOOC (0883). Tencent Holdings (00700) recorded the largest net outflow at HK$480mn, followed by Alibaba-W (9988).
The Hang Seng Index opened 133 points lower, initially falling 241 points to 25,475, before narrowing its losses to 19 points at 25,697. It closed down 251 points, or 1%, at 25,465. The Hang Seng China Enterprises Index fell 28 points, or 0.3%, to 8,671; the Hang Seng Tech Index fell 50 points, or 1%, to 4,978. Total market turnover was HK$246.5 billion. Rumors circulated that Stellantis intended to introduce a Chinese automaker for its European operations, causing Leapmotor (9863) to rise 2.27%. Li Auto (2015) reported a non-GAAP net profit of RMB 2.38 billion last year, a decline of over 77%, causing its share price to fall 3.25%.
Source: KGI Investment Products and Solutions Department
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With no signs of U.S.–Iran negotiations, geopolitical tensions continue to escalate, pushing oil prices sharply higher and lifting inflation expectations. Higher energy prices have driven Treasury yields upand delayed Fed rate-cut expectations...