Despite the recent feud between the Kwok brothers being more or less resolved, the company has to be braced for a Hong Kong property market that has more or less reached its zenith in terms of prices (about HK$60 per square foot in Central), has a Hong Kong stock market that is still susceptible to bad news, and a stock in a sector with very little to look forward to especially if interest rates are to be raised later this year by the Fed (as the Hong Kong banks more or less follow the Fed's interest rate movements). This stock looks set to drop below HK$100 (HK$7.80 = US$1.00 peg) hence the target price, which is a conservative estimate, based on the possibility that with the increasing frequency of share buybacks by its directors, SHKP may find solid support by institutional investors around HK$80-90.
$13.85 (07/01/08)
