Zhi Tong Cai Jing·2025-07-31 09:31Core Viewpoint - Credit Lyonnais reports that Hang Lung Properties (00101) has met expectations for its first-half performance, maintaining its interim dividend despite a decline in luxury goods sales impacting overall tenant sales in the first half of 2025 [1] Group 1: Financial Performance - Hang Lung's tenant sales in mainland China have shown continuous improvement since the fourth quarter of last year, although overall sales are still affected by a decline in luxury goods sales [1] - The target price for Hang Lung has been raised from HKD 5.4 to HKD 7.7, with the net asset value (NAV) discount narrowing from 78% to 67% due to clearer expectations of interest rate cuts by the Federal Reserve and continuous improvement in tenant sales [1] Group 2: Market Sentiment and Future Outlook - The weak market sentiment and normalization of outbound tourism have led Credit Lyonnais to predict a continued decline in luxury goods sales over the next 12 months [1] - Positive catalysts for Hang Lung include potential over-expectation in interest rate cuts by the U.S. Federal Reserve, which could trigger a reassessment of high-yield stocks like Hang Lung [1] - Negative catalysts include weaker-than-expected tenant sales in China, which could lead to profit pressure and impact the ability to maintain absolute dividends and deleverage [1]