Country Daily
Trip.com/Sino Land/Wharf REIC/Karrie International
Analyst
Top Stories
Company Results | Trip.com (9961 HK/BUY/HK$317.20/Target: HK$475.00)
Trip.com reported mixed 1Q26 results, with revenue broadly in line with expectations, while profitability missed estimates. Total net revenue rose 17% yoy to Rmb16.2b. Non-GAAP net income declined 6.8% yoy to Rmb3.9b, missing our and consensus estimates by 2-7%, while non-GAAP net margin expanded 3.8ppt yoy to 31.2%. TCOM expects for 2Q26 total net revenue growth to decelerate to 3-8% yoy, with the midpoint implying a 9-10% miss vs consensus expectation. Maintain BUY with a lower target price of HK$475.00 (US$53.00).
Company Update | Sino Land (83 HK/BUY/HK$10.55/Target: HK$13.50)
Sino Land delivered strong sales in 1H26, with key projects achieving a price outperformance vs the broader market. We see limited impact from tighter mainland investment rules given its mass-market focus, and expect its retail portfolio to benefit from Hong Kong's recovery with modest negative rental reversions and improving occupancy. Property development margin is expected to stay near 1HFY26's level in 2HFY26, with improvement from FY27 onwards. Maintain BUY with target price unchanged at HK$13.50.
Company Update | Wharf REIC (1997 HK/BUY/HK$22.56/HK$28.80)
Wharf REIC's retail and hotel segments are benefitting from a stronger renminbi and rising tourism, with Harbour City outperforming the market. Occupancy is expected to be stable but rental reversion remains negative due to the sales-torent lag. Office recovery is mixed ‒ Central and Tsim Sha Tsui are improving, while Causeway Bay remains under pressure. Lower debt ratio and falling HIBOR will support 1H26 earnings. Management plans to unveil the Marco Polo Hotel AEI plan by end-26. Maintain BUY; target price unchanged at HK$28.80.
Small/Mid Cap Highlights | Karrie International (1050 HK/BUY/HK$2.10/Target: HK$3.15)
Karrie's FY26 revenue and net profit missed our estimates by 5%/8% respectively on weaker-than-expected growth in server enclosure revenue. Management targets a 30% revenue growth with gross margin expansion in FY27 and expects AI revenue to account for 25% of its server enclosure revenue, vs 12% in FY26. It is ramping up server chassis production in Thailand and adding rack-dedicated facilities in both Thailand and Mainland China. Maintain BUY with a lower target price of HK$3.15 based on 14.0x FY27F PE.
Technical Analysis
MicroPort NeuroScientific | 2172 HK
Support levels: HK$10.07/HK$9.72
Resistance levels: HK$12.37/HK$13.98
Shanghai Biren Tech | 6082 HK
Support levels: HK$59.50/HK$55.30
Resistance levels: HK$78.50/HK$84.45
Top Stories
Company Results | Trip.com (9961 HK/BUY/HK$317.20/Target: HK$475.00)
Trip.com reported mixed 1Q26 results, with revenue broadly in line with expectations, while profitability missed estimates. Total net revenue rose 17% yoy to Rmb16.2b. Non-GAAP net income declined 6.8% yoy to Rmb3.9b, missing our and consensus estimates by 2-7%, while non-GAAP net margin expanded 3.8ppt yoy to 31.2%. TCOM expects for 2Q26 total net revenue growth to decelerate to 3-8% yoy, with the midpoint implying a 9-10% miss vs consensus expectation. Maintain BUY with a lower target price of HK$475.00 (US$53.00).
Company Update | Sino Land (83 HK/BUY/HK$10.55/Target: HK$13.50)
Sino Land delivered strong sales in 1H26, with key projects achieving a price outperformance vs the broader market. We see limited impact from tighter mainland investment rules given its mass-market focus, and expect its retail portfolio to benefit from Hong Kong's recovery with modest negative rental reversions and improving occupancy. Property development margin is expected to stay near 1HFY26's level in 2HFY26, with improvement from FY27 onwards. Maintain BUY with target price unchanged at HK$13.50.
Company Update | Wharf REIC (1997 HK/BUY/HK$22.56/HK$28.80)
Wharf REIC's retail and hotel segments are benefitting from a stronger renminbi and rising tourism, with Harbour City outperforming the market. Occupancy is expected to be stable but rental reversion remains negative due to the sales-torent lag. Office recovery is mixed ‒ Central and Tsim Sha Tsui are improving, while Causeway Bay remains under pressure. Lower debt ratio and falling HIBOR will support 1H26 earnings. Management plans to unveil the Marco Polo Hotel AEI plan by end-26. Maintain BUY; target price unchanged at HK$28.80.
Small/Mid Cap Highlights | Karrie International (1050 HK/BUY/HK$2.10/Target: HK$3.15)
Karrie's FY26 revenue and net profit missed our estimates by 5%/8% respectively on weaker-than-expected growth in server enclosure revenue. Management targets a 30% revenue growth with gross margin expansion in FY27 and expects AI revenue to account for 25% of its server enclosure revenue, vs 12% in FY26. It is ramping up server chassis production in Thailand and adding rack-dedicated facilities in both Thailand and Mainland China. Maintain BUY with a lower target price of HK$3.15 based on 14.0x FY27F PE.
Technical Analysis
MicroPort NeuroScientific | 2172 HK
Support levels: HK$10.07/HK$9.72
Resistance levels: HK$12.37/HK$13.98
Shanghai Biren Tech | 6082 HK
Support levels: HK$59.50/HK$55.30
Resistance levels: HK$78.50/HK$84.45
Analyst
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