Bank of America Securities released a research report stating that it reiterates a 'neutral' rating for Hang Lung Properties (00101). The performance in the first half of this year was lower than expected, and the target price was lowered by 17% from HKD 7.5 to HKD 6.2 per share, equivalent to a 73% discount of the asset value per share. The company's management acknowledged that the unfavorable factors for high-end retail in the Mainland will continue in the third quarter due to outbound tourism, but the fourth quarter may improve.
The bank stated that it lowered the earnings per share forecast for Hang Lung Properties from 2024 to 2026 by 2% to 9%, respectively to HKD 0.843, HKD 0.792 and HKD 0.802. It is expected that the recent stock price will fluctuate due to uncertain rental income prospects, but considering that the stock valuation is not high, it believes that Hang Lung Properties' profitability growth will not recover until the 2026 fiscal year.