HK Land

HK Land: Morgan Stanley says it favors HK office property for 2013 as "concerns of continued policy action, slow sell-through and increased competition will keep the lid on NAV accretion for developers." It now prefers office rental exposure most and expects rents to rise by 10% in 2013. Tips HK Land , Cheung Kong (0001.HK) and SHK Properties (0016.HK) in that order. Says HK Land is trading at 0.70X FY12 P/B (average 0.83X) and should benefit from Central rents bottoming; SHKP has 24% exposure to HK office and should show a significant increase in market share (from 1,300 units to 3,000 units) for residential project in 2013; and CK will provide more than 40% of all new units in the market in 2013, and should see a meaningful contribution (more than 30% of earnings) from China's residential market.