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<Research>UBS Foresees H Shrs to Hail New Reflation Cycle, Sets End-2026 Target of MSCI HK Index at 12,300
Recommend 35 Positive 55 Negative 17 |
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The Hong Kong stock market may embrace a new reflation cycle, primarily driven by the booming financial sector, compounded with declining interest rates and a weakening US dollar, UBS said in its research report. With the sustained growth of Hong Kong's financial industry, stocks such as HKEX (00388.HK), brokers, insurers, and banks will directly benefit from elevating market turnover and growing demand for asset and wealth management products. Meanwhile, better leasing demand in the office market was also anticipated, which will be boon to landlords. UBS set a target of 12,300 for the MSCI Hong Kong Index (USD-denominated) by the end of 2026, based on 15x forward P/E and 9% p.a. EPS growth in 2026E/27E. The broker listed its preferred local stocks as AIA (01299.HK), Futu (FUTU.US), HENDERSON LAND (00012.HK), SWIREPROPERTIES (01972.HK), GALAXY ENT (00027.HK), and WYNN MACAU (01128.HK), all with a Buy rating. Target prices were detailed in a separate table. Furthermore, UBS was also upbeat about Chinese technology hardware, brokers, internet, photovoltaic supply chain, and overseas-bound stocks. Among H shares and Chinese ADRs, its preferences were HORIZONROBOT-W (09660.HK), FUYAO GLASS (03606.HK), NetEase (NTES.US), TENCENT (00700.HK), Alibaba (BABA.US), ZHAOJIN MINING (01818.HK), and GDS Holdings (GDS.US). AAStocks Financial News |
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