Ge Long Hui·2025-07-31 02:56Core Viewpoint - Citigroup's research report indicates that Hang Lung Properties' retail revenue in mainland China exceeded expectations in the first half of the year, driven by a recovery in rental income and strong tenant sales [1] Group 1: Financial Performance - The company is expected to see profit recovery in the second half of this year through 2027, with retail rental income projected to grow by approximately 5% in the second half [1] - Core profit forecast for this year has been revised down by 2.8% to HKD 29.35 billion due to reduced interest expense capitalization and pressure in the mainland office market [1] - Core profit estimates for 2026 and 2027 have been increased by 1.1% and 5.6%, respectively, to HKD 29.67 billion and HKD 32.35 billion [1] Group 2: Strategic Developments - The Westlake 66 office and retail components in Hangzhou are set to open in the second half of this year and the first half of next year, respectively [1] - The peak of capital expenditure has passed, allowing the company to maintain stable annual dividends and potentially end the current scrip dividend arrangement during the mid-term results announcement next year [1] Group 3: Investment Rating - Citigroup maintains a "Buy" rating for Hang Lung Properties, with the target price raised from HKD 7.05 to HKD 8.65 [1]