Hong Kong Property & Conglomerates Results preview: kickstarting the earnings upcycle

Research evidence excerpt

Hong Kong Property & Conglomerates Results preview: kickstarting the earnings upcycle

J P M O R G A N Asia Pacific Equity Research

16 July 2026

Hong Kong Property &

Conglomerates

Results preview: kickstarting the earnings upcycle

After a 2-3 year earnings downcycle, we believe the upcoming results (to be Mainland China/Hong Kong Property

released from July to November; most are interim, but some are annual results) will & Conglomerates

kickstart a multi-year earnings upcycle (we forecast a 9% Y/Y earnings growth Karl Chan AC

(Figure 3Semi-anualcorenetprofitY/Ygrowth) and 2-3% Y/Y DPS growth), driven by improving HK DP margins (852) 2800-8513

(Table 10HKDPEBITmargintimeseries), partial stabilization in rental income (Figure 12HKProperty-averagerentalincomeY/Y) & lowering financing karl.chan@jpmorgan.com

costs. In the near term, we expect the sector may continue to be heavily influenced Venus Choi

by the interest rate narrative, which is rapidly shifting. In our stock-picking, we (852) 2800-8599

prefer companies with (1) lower sensitivity to rates; (2) earnings revival over the venus.choi@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

next 2-3 years; (3) proactive capital recycling; and (4) improvement in operating Morgan Broking (Hong Kong) Limited

data of key sub-sector exposure (e.g. spot rent rebound in Central office; spot rent

stabilization in HK retail). Since the overhang of capital outflow control may not

be totally removed any time soon, we see higher certainty in landlords over

developers in the near term. Top picks: Link REIT, HKL & Swire Prop among

landlords; SHKP among developers; CK Hutchison & Jardine Matheson

among conglomerates.

Results preview