Goldman Sachs has upgraded to Buy from Neutral Swire Properties (HKG:1972) (on Conviction List) and New World Development (HKG:0017), and downgraded K. Wah International (HKG:0173) to Neutral from Buy.
Swire Properties is upgraded for its significant exposure to the secular growth of decentralized commercial and luxury residential properties.
New World Development is on Goldman Sachs' Buy list as the developer is accelerating its efforts to monetize its residential land bank with a number of large scale residential projects scheduled to be launched for sale in the next 6-9 months.
The brokerage also reiterated its Buy rating on Hang Lung Properties (HKG:0101), Kerry Properties (HKG:0683) and Sino Land (HKG:0083), Sell rating on Great Eagle (HKG:0041) and Champion REIT (HKG:2778).
The brokerage reiterates its Buy rating on Hang Lung Properties and Kerry Properties as both companies have a significant exposure to commercial properties in both Hong Kong and China and also a decent exposure to high-end residential properties in Hong Kong, and Sino Land on its successful track record in property sales.
Goldman Sachs retains its Sell ratings on Great Eagle and Champion REIT as the brokerage remains cautious on Great Eagle's overseas hotel operations and Champion REIT's Citibank Plaza leasing outlook.
K. Wah is downgraded on less attractive valuation after a significant share price rebound year-to-date, the brokerage says.