Goldman Sachs published a report stating that Lingzhan recorded net loss of about HK$2 billion for the 2024 fiscal year ending at the end of March, including depreciation of rental properties of about HK$8.2 billion. Excluding related impacts, the basic net profit for the year increased by 4% year-on-year to about HK$6.2 billion, in line with the bank's and market expectations.
The bank lowered its earnings estimate per share for the 2025 and 2026 fiscal years by 7% to 0%, and lowered its target price from HK$47.6 to HK$46.9, maintaining its “buy” rating, taking into account the reduction in rent renewal fees for the Hong Kong property in the Mainland.
It is also believed that the stock price adjustment of Lingzhan over the past three months is estimated to be due to market concerns about local Hong Kong residents' daily shopping expenses going to Shenzhen, especially during the weekend, and the impact of delays in interest rate reduction forecasts.