Lyon released a research report saying that since compared with its peers, Hang Lung Properties (00101)'s risk-return rating was downgraded from “outperforming the market” to “holding”, and the profit from 2024 to 2026 was lowered by 17.8%/23.5%/20.8%, respectively, to reflect the assumption that luxury home sales and serviced apartment sales in the mainland will slow down, and the target price was cut from HK$11.6 to HK$5.5.
According to the report, the company cut its interim dividend by 33%, which was unexpected by the market and also disappointed the market. Management explained that the move was to prioritize debt reduction in the challenging environment of the Mainland and Hong Kong. However, the bank believes that this is contrary to the company's practices over the past decade, and believes that under the new leadership, the group's management philosophy has changed.
