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Sino Land (83): interim results for the year ending 2025 show that, excluding changes in the fair value of investment properties, underlying profit slightly decreased to HK$2.22 billion. Including revaluation losses, net profit fell to HK$1.533 billion. Despite the profit decline, the Group maintained its interim dividend of HK$0.15 per share and possessed ample net cash of HK$51.402 billion, demonstrating strong defensive capabilities. Looking ahead, the interest rate cut cycle and talent acquisition programs will provide positive support for the local property market. In summary, the Group's strong net cash position allows it to remain flexible in a volatile environment and will continue to employ a prudent strategy to seek investment opportunities to enhance long-term value.
Geopolitical risks between the US and Iran escalate
The US Producer Price Index (PPI) rose sharply by 2.9% year-on-year in January, significantly higher than the market expectation of 2.6%; the month-on-month increase was 0.5%, also significantly exceeding the expected 0.3%. Furthermore, the core PPI, excluding food and energy, rose by 3.6% year-on-year, also exceeding Wall Street's forecast of 3.0% and the previous value of 3.3%, with the month-on-month increase also exceeding market expectations of 0.8%. This broader-than-expected inflation in the production sector was primarily driven by rising service sector costs, reflecting persistent price pressures in labor-intensive sectors. In addition, geopolitical tensions continue to escalate. Following the attacks launched by the US and Israel on Saturday, Iran retaliated by attacking several Middle Eastern allies, such as Israel. Trump warned that if Iran retaliates, the US will respond with unprecedented force. This will likely drive up oil and gold prices in the short term.
Hong Kong Stock Connect saw a net inflow of HK$14.997 billion on Friday, with the Tracker Fund of Hong Kong (2800) seeing the largest inflow at HK$8.385 billion; followed by the Hang Seng China Enterprises Index (2828). Yangtze Optical Fibre and Cable (6869) recorded the largest net outflow at HK$505 million, followed by Kuaishou-W (1024).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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