DBS has released a research report stating that even considering the dividend reset, HANG LUNG PPT (00101) still has an attractive dividend yield of 8.6%. Such a low valuation is unreasonable and provides a great opportunity for long-term value investors betting on the Chinese Luxury Goods retail market. The bank has lowered its Target Price from HKD 7.56 to HKD 7.09, giving a 'Buy' rating.
The report mentions that although the overall tenant sales of HANG LUNG PPT's luxury shopping malls decreased last year, the renewal rental growth in the Retail Trade sector remained positive, helping to offset the gap in turnover rent. Additionally, Westlake HANG LUNG Plaza (Westlake 66) is nearing completion, which is expected to drive rental income growth for HANG LUNG PPT in the medium term.
66) It is nearing completion and is expected to drive the rental income growth of HANG LUNG PPT in the medium term.