智通财经网·2025-07-31 06:41Core Viewpoint - Citi has downgraded the core profit forecast for Hang Lung Properties (00101) by 2.8% to HKD 2.935 billion due to expected reductions in interest expense capitalization and pressure in the mainland office market, while raising the core profit estimates for 2026 and 2027 by 1.1% and 5.6% to HKD 2.967 billion and HKD 3.235 billion respectively [1] Group 1 - The company's 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] - The company is expected to see profit recovery from the second half of this year through 2027, with retail rental income projected to grow by approximately 5% in the second half [1] - The Westlake66 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, alongside a decline in average interest rates [1] Group 2 - The company is anticipated to maintain stable annual dividends as the peak of capital expenditure has passed, and it may stop the current scrip dividend arrangement when announcing mid-term results next year [1] - Citi has maintained a "Buy" rating for the group and raised the target price from HKD 7.05 to HKD 8.65 [1]