Zhi Tong Cai Jing·2025-07-31 06:45Core Viewpoint - Bank of America Securities upgraded Hang Lung Properties (00101) from "Neutral" to "Buy" and raised the target price by 22% from HKD 7.9 to HKD 9.6, citing improvements in tenant sales in mainland China from June to July [1] Group 1: Financial Performance - The firm noted that tenant sales are expected to show low single-digit growth in the second half of the year due to a lower comparative base [1] - Adjustments to earnings per share forecasts for the fiscal years 2025 to 2027 were made, with changes ranging from a decrease of 2% to an increase of 1% [1] Group 2: Catalysts and Strategic Moves - Key catalysts include the opening of the flagship store at Shanghai Hang Lung Plaza and short-term asset sales, including serviced apartments in Wuxi and the property at 8 Stubbs Road in Hong Kong, aimed at accelerating deleveraging [1] - The management emphasized careful consideration of the dilution impact from equity fundraising, indicating that the likelihood of issuing convertible bonds in the short term is low [1] Group 3: Dividend Yield - The dividend yield stands at 6.5%, which is higher than the industry average of 5% [1]