Mainland Developers Rally; Good Time To Buy-SHKF
Recently beaten-down mainland developer stocks rebound strongly: sector leader, soon-to-be blue chip China Overseas (0688.HK) +6.1% at HK$16.94,
Shimao (0813.HK) +6.8% at HK$21.90, CR Land (1109.HK) +5.7% at HK$17.76, Country Garden (2007.HK) +11.6% at HK$9.85, Sino-Ocean Land (3377.HK) +6.9% at HK$10.84. SHK Financial says vacant commodity housing has fallen for 5 consecutive months, coupled with property GFA sold outstripping completions, "indicating demand in major cities and provinces still exceeds supply."
With clear 2007-08 earnings visibility, thinks China property stock prices now at undemanding levels after recent fall.
Top picks: Agile (3383.HK), KWG (1813.HK), R&F (2777.HK), Shenzhen Investment (0604.HK), Guangzhou Investment (0123.HK).
Recently beaten-down mainland developer stocks rebound strongly: sector leader, soon-to-be blue chip China Overseas (0688.HK) +6.1% at HK$16.94,
Shimao (0813.HK) +6.8% at HK$21.90, CR Land (1109.HK) +5.7% at HK$17.76, Country Garden (2007.HK) +11.6% at HK$9.85, Sino-Ocean Land (3377.HK) +6.9% at HK$10.84. SHK Financial says vacant commodity housing has fallen for 5 consecutive months, coupled with property GFA sold outstripping completions, "indicating demand in major cities and provinces still exceeds supply."
With clear 2007-08 earnings visibility, thinks China property stock prices now at undemanding levels after recent fall.
Top picks: Agile (3383.HK), KWG (1813.HK), R&F (2777.HK), Shenzhen Investment (0604.HK), Guangzhou Investment (0123.HK).