Sun Hung Kai kept at 'outperform' by Credit Suisse
7/16/12 1:50 AM ET (MarketWatch)
HONG KONG (MarketWatch) -- Credit Suisse on Monday maintained its upbeat outlook on Sun Hung Kai Properties Ltd. , saying investors were likely to begin focusing on the company's fundamentals and sharp discount to net asset value, after the joint chairmen of the property company were formally charged with bribery offenses by Hong Kong's anti-graft law enforcement agency on Friday. Credit Suisse said charges by the Independent Commission Against Corruption against the brothers Victor and Raymond Kwok would "remove part of the uncertainty surrounding the group." The research house said the stock market had discounted the possibility of the charges in the sharp price drop of Sun Hung Kai shares following the arrests of the Kwoks in March. It said shares in the property group are currently priced at a 43% discount to net asset value. Credit Suisse also said it looked favorably on news Friday that Mike Wong and Victor Lui were named deputy co-managing directors of the company, saying both had long service records with SHK. "We believe the stock should start to outperform from here, especially given the company's strong property sales which have exceeded its full-year target." Shares of Sun Hung Kai pared a steeper loss earlier in the session to trade down 1.1% in the afternoon session.