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HONG KONG: Sun Hung Kai, Asia's largest property developer by market value, is confident of achieving its sales target for the 2010/11 fiscal year, despite harsh tightening measures announced by Hong Kong last month.
So far, Sun Hung Kai Properties Ltd had recorded housing sales of HK$21 billion (RM8.51 billion) for the current financial year that ends in June 2011, 80% of its full-year target of HK$26 billion, senior executives said.
In the previous financial year, the Hong Kong-based developer that built the International Finance Centre, a landmark in the Chinese territory, achieved housing sales of HK$23 billion.
"The government's measures haven't really caused a change in our company strategy. We're still rolling out projects as planned," Victor Lui, executive director of Sun Hung Kai Real Estate Agency, told a news conference.
In late November, Hong Kong unveiled a series of measures, its toughest this year, to rein in the market that has pushed housing prices up 50% since the start of last year.
Sun Hung Kai posted good sales with its recent projects , such as Larvotto and Valais, but analysts said sentiment would still be affected by the latest measures.
So far, RBS is putting the stock on hold.
"Active land purchases should support earnings visibility over the next three years, but a potential policy-driven market downturn would likely drag down near-term stock performance," RBS property analyst David Ng said in a report.
Sun Hung Kai's shares were up 1.62%, outperforming the main Hang Seng index's 0.91%.
The company is studying whether to issue yuan-denominated bonds, though it is in no hurry to raise money now due to its healthy cash flow situation, senior executives said. — Reuters
So far, Sun Hung Kai Properties Ltd had recorded housing sales of HK$21 billion (RM8.51 billion) for the current financial year that ends in June 2011, 80% of its full-year target of HK$26 billion, senior executives said.
In the previous financial year, the Hong Kong-based developer that built the International Finance Centre, a landmark in the Chinese territory, achieved housing sales of HK$23 billion.
"The government's measures haven't really caused a change in our company strategy. We're still rolling out projects as planned," Victor Lui, executive director of Sun Hung Kai Real Estate Agency, told a news conference.
In late November, Hong Kong unveiled a series of measures, its toughest this year, to rein in the market that has pushed housing prices up 50% since the start of last year.
Sun Hung Kai posted good sales with its recent projects , such as Larvotto and Valais, but analysts said sentiment would still be affected by the latest measures.
So far, RBS is putting the stock on hold.
"Active land purchases should support earnings visibility over the next three years, but a potential policy-driven market downturn would likely drag down near-term stock performance," RBS property analyst David Ng said in a report.
Sun Hung Kai's shares were up 1.62%, outperforming the main Hang Seng index's 0.91%.
The company is studying whether to issue yuan-denominated bonds, though it is in no hurry to raise money now due to its healthy cash flow situation, senior executives said. — Reuters
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