UBS Downgrades Sun Hung Kai Properties Ltd (SUHJY) Amid Valuation Concerns

Sun Hung Kai Properties Ltd (OTCMKTS:SUHJY) is one of the most undervalued Hong Kong stocks to buy, according to analysts. On October 16, UBS downgraded Sun Hung Kai Properties (HK:0016) from Buy to Neutral, setting a price target of HK$96.00.

UBS Downgrades Sun Hung Kai Properties Ltd (SUHJY) Amid Valuation Concerns

The firm cited a balanced risk-reward profile following a 31% year-to-date rally, driven by a rebound in Hong Kong’s residential market. Despite a low price-to-book ratio and NAV discount, UBS noted that residential assets make up just 20% of the company’s gross asset value, limiting upside potential without strategic shifts in capital recycling or shareholder returns. UBS highlighted possible downside protection from the launch of Cullinan Sky Phase 2, with Phase 1 showing 7–17% price gains.

Sun Hung Kai Properties Ltd (OTCMKTS:SUHJY) develops, owns, and manages a diverse portfolio of premium properties, including residential estates, offices, and shopping malls. Beyond real estate, the Hong Kong-based company also has investments in various sectors, including property management, construction, insurance, telecommunications, information technology, and infrastructure.

While we acknowledge the potential of Sun Hung Kai Properties Ltd (OTCMKTS:SUHJY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SUHJY and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.