Core Viewpoint - Morgan Stanley prefers the office sector over the retail sector in Hong Kong real estate, noting that while office vacancy rates remain high, they are improving, with Central expected to benefit first [1] Group 1: Office Sector - Morgan Stanley favors Central over non-core areas for office properties, with Hongkong Land and Hysan Development being preferred over Wharf Real Estate Investment [1] - For the outlook on Hong Kong office rentals this year, Morgan Stanley expects a 3% increase in Central rents, while overall office rents are projected to decline by 3% [1] Group 2: Retail Sector - In the retail sector, Morgan Stanley prefers mainland luxury retail stocks over Hong Kong retail stocks, with Hang Lung Properties favored over Wharf Real Estate Investment and Link REIT; Swire Properties is also preferred over Wharf Real Estate Investment [1] - The retail sector faces pressure on shopping mall rents due to online sales and competition from the Shenzhen market [1] Group 3: Risks and Challenges - Morgan Stanley advises avoiding Wharf Real Estate Investment due to challenges such as market share loss and tenant retention risks, exemplified by Alibaba's acquisition of the Grade A commercial building "One Island East" in Causeway Bay, leading to its relocation from Times Square [1] - Growth in mainland duty-free shopping and inbound tourism may impact luxury sales in major shopping malls [1]

Core Viewpoint - Morgan Stanley prefers the office sector over the retail sector in Hong Kong real estate, noting that while office vacancy rates remain high, they are improving, with Central expected to benefit first [1] Group 1: Office Sector - Morgan Stanley favors office properties in Central over non-core areas, with Hong Kong Land and Hysan Development being preferred over Wharf Real Estate [1] - The firm forecasts a 3% increase in Central office rents this year, while overall office rents are expected to decline by 3% [1] Group 2: Retail Sector - In the retail sector, Morgan Stanley prefers mainland luxury retail stocks over Hong Kong retail stocks, with Hang Lung Properties favored over Wharf Real Estate and Link REIT; Swire Properties is also preferred over Wharf Real Estate [1] - Retail rents are under pressure due to online sales and competition from the Shenzhen market [1] - The growth of duty-free shopping and inbound tourism in mainland China may impact luxury sales in major shopping malls [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年12月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 九龍倉置業地產投資有限公司 呈交日期: 2026年1月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01997 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | 本月底法定/註冊股本總額： HKD 50 ...

Core Viewpoint - Morgan Stanley reports that Hong Kong's retail sales value increased by 6.5% year-on-year in November, maintaining a moderate recovery trend similar to October's 6.9% growth [1] Retail Sales Performance - Non-essential goods outperformed essential goods, with a growth of 11% compared to 2% for essential items, primarily driven by a strong 39% increase in electronic products [1] - Excluding electronics, the retail sales value still showed a year-on-year increase of 2.1% in November, down from 3.2% in October [1] Market Sentiment and Forecast - The slight slowdown in November retail sales may be partially attributed to the emotional impact of the fire at Hong Fu Court in Tai Po at the end of November [1] - The forecast for December retail sales is expected to show low to mid-single-digit growth, indicating a slight slowdown, as the strong momentum in electronic products may diminish [1] - The year-on-year growth of inbound travelers in December is also expected to slow slightly, with ongoing effects from the Tai Po fire impacting consumer sentiment [1] Economic Factors Supporting Retail - Retail consumption is anticipated to continue benefiting from (1) the wealth effect driven by the stock and property markets, and (2) the depreciation of the Hong Kong dollar [1] Company Ratings - Morgan Stanley maintains a constructive view on Wharf Real Estate Investment Company (01997), rating it as "Overweight," due to signs indicating that non-essential retail is emerging from a trough [1] - Conversely, a "Neutral" rating is maintained for Link REIT (00823), as supermarket sales in Hong Kong fell by 2% year-on-year in November, indicating ongoing competition from cross-border e-commerce platforms like Pinduoduo (PDD.US) [1]

Core Viewpoint - Morgan Stanley reports that Hong Kong's retail sales value increased by 6.5% year-on-year in November, maintaining a moderate recovery trend similar to October's 6.9% growth [1] Retail Sales Performance - Non-essential goods outperformed essential goods, with a growth of 11% compared to 2% for essential items, primarily driven by a strong 39% increase in electronic products [1] - Excluding electronics, the retail sales value still showed a year-on-year increase of 2.1% in November, down from 3.2% in October [1] Market Sentiment and Forecast - The slight slowdown in November retail sales may be partially attributed to the impact of a fire at Hong Fu Court in Tai Po at the end of November, which affected consumer sentiment [1] - The forecast for December retail sales is expected to show low to mid-single-digit growth, indicating a slight slowdown, as the strong momentum in electronic products may diminish [1] - The year-on-year growth rate of inbound tourists in December is also expected to slow down slightly, with ongoing effects from the Tai Po fire on consumer sentiment [1] Economic Factors Supporting Retail - Retail consumption is anticipated to continue benefiting from (1) wealth effects driven by the stock and property markets and (2) the depreciation of the Hong Kong dollar [1] Company Ratings - The company maintains a constructive view on Wharf Real Estate Investment Company (01997), rating it as "Overweight," due to signs indicating that non-essential retail is recovering from its lows [1] - Conversely, the company holds a "Neutral" rating on Link REIT (00823), as supermarket sales in Hong Kong fell by 2% year-on-year in November, indicating ongoing competition from cross-border e-commerce platforms like Pinduoduo (PDD.US) [1]

Core Viewpoint - Kowloon Warehouse Properties (01997) experienced a decline of over 4%, currently trading at HKD 24.16 with a transaction volume of HKD 27.19 million [1] Group 1: Retail Industry Performance - The Hong Kong Census and Statistics Department reported that the provisional estimate for total retail sales value in November 2025 was HKD 33.7 billion, representing a 6.5% increase compared to the same month in 2024 [1] - The revised estimate for total retail sales value in October 2025 showed a 6.9% increase compared to October 2024 [1] - The Chairman of the Hong Kong Retail Management Association, Cheung Kiu On-yee, anticipates that retail sales in the first half of 2026 will remain stable, with continued spending from residents traveling to the mainland [1] Group 2: Market Sentiment and Forecast - JPMorgan indicated a slight slowdown in retail sales in November, potentially influenced by the emotional impact of the fire at Hong Fu Court in Tai Po at the end of November [1] - The bank expects December retail sales to show low to mid-single-digit growth, reflecting a slight slowdown due to a potential decline in the strong momentum of electronic products and a minor slowdown in the year-on-year growth of inbound tourists [1] - Despite the challenges, the bank believes retail consumption will continue to benefit from the wealth effect driven by the stock and property markets, as well as support from the depreciation of the Hong Kong dollar [1] - JPMorgan maintains a constructive view on Kowloon Warehouse Properties, rating it as "Overweight," citing signs that non-essential retail is emerging from a trough [1]

Group 1 - The stock of Kowloon Development (01997) has dropped over 4%, currently at HKD 24.16 with a trading volume of HKD 27.19 million [1] - The Hong Kong government reported that the estimated total retail sales value for November 2025 is HKD 33.7 billion, a 6.5% increase compared to the same month in 2024 [1] - The revised estimate for total retail sales value in October 2025 shows a 6.9% increase compared to October 2024 [1] Group 2 - The Chairman of the Hong Kong Retail Management Association, Cheung Kiu On-yee, anticipates that retail sales in Hong Kong will remain flat in the first half of 2026, with ongoing consumer spending from mainland visitors [1] - JPMorgan indicated a slight slowdown in retail sales in November, potentially influenced by the fire incident at Tai Po Hong Fu Court at the end of November [1] - The bank expects December retail sales to show low to mid-single-digit growth, with a slight slowdown in the year-on-year increase of inbound travelers and ongoing impacts from the fire affecting consumer sentiment [1] Group 3 - JPMorgan maintains a constructive view on Kowloon Development, rating it as "Overweight," citing signs that non-essential retail is emerging from a downturn [1]

Group 1 - The core viewpoint of the report indicates that Hong Kong's retail sales value increased by 6.5% year-on-year in November, maintaining a moderate recovery trend similar to October's 6.9% growth [1] - The slight slowdown in November retail sales may be partially attributed to the emotional impact of the fire at Hong Fu Court in Tai Po at the end of November [1] - The report anticipates a low to mid-single-digit growth in December retail sales, influenced by a potential decline in the strong momentum of electronic products and a slight slowdown in the year-on-year growth of inbound tourists [1] Group 2 - The report maintains a constructive outlook on Wharf Real Estate Investment Company, rating it as "Overweight," due to signs indicating that non-essential retail is emerging from a trough [1] - Conversely, the report holds a "Neutral" rating on Link REIT, as supermarket sales fell by 2% year-on-year in November, suggesting ongoing competition from cross-border e-commerce for Link REIT's tenants [1]

Core Viewpoint - Hong Kong's retail sales continue to outperform expectations, with a year-on-year increase of 6.9% in October, marking the largest growth in 22 months [1] Retail Performance - Luxury goods retail sales grew by 9.5% year-on-year, reaching a 21-month high [1] - The growth in October retail sales was primarily driven by electronics and luxury goods, while categories such as supermarkets, furniture, and fuel experienced declines [1] Investment Recommendations - The positive performance of luxury goods retail is expected to provide a positive driving force for the stock prices of Wharf Real Estate Investment and Hysan Development [1] - The company recommends an "add" rating for Wharf Real Estate Investment with a target price of HKD 30.3 [1] - Investors are advised to reduce holdings in Link REIT, with a "neutral" rating and a target price of HKD 36.8 [1] Market Outlook - The company anticipates that luxury-themed investments will outperform the market in the short term, especially with the upcoming holiday season in December and the Lunar New Year in February [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年11月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 九龍倉置業地產投資有限公司 呈交日期: 2025年12月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01997 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.1 | HKD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.1 | HKD | | 500,000,000 | 本 ...