Ge Long Hui·2025-08-05 03:30Core Viewpoint - The company reported strong retail performance in its shopping centers, with most locations showing year-on-year growth in retail sales for the first half of 2025, indicating a robust recovery in the retail sector [1][2]. Group 1: Retail Performance - Shanghai Xinyi Taikoo Hui saw a retail sales increase of 13.5% year-on-year, while Beijing Sanlitun Taikoo Li grew by 6.8% [1]. - Chengdu Taikoo Li and Shanghai Qiantan Taikoo Li reported retail sales growth of 4% and 0.2% respectively, with Beijing Yiti Port remaining flat and Guangzhou Taikoo Hui declining by 2.1%, a significant improvement from a 10.7% decline in 2024 [1]. - The overall trend indicates that major shopping centers are benefiting from the continued entry of luxury brands, which is expected to further enhance retail sales and rental income in the coming years [1]. Group 2: Hong Kong Market Insights - Hong Kong shopping centers maintained full occupancy with a slight improvement in retail sales growth, contrasting with street shops affected by tourist spending [2]. - Taikoo Place, Taikoo City Centre, and Cityplaza reported retail sales growth of 1.4%, 2%, and a decline of 3.3% respectively, with a consistent 100% occupancy rate for six consecutive quarters [2]. - The Hong Kong office market remains under pressure due to historical rent reductions, with new supply continuing to impact rental rates, although new lease rates have not seen significant declines [2]. Group 3: Investment Outlook - The company’s assets are primarily located in prime shopping districts, providing a strong competitive advantage and operational capabilities that enhance project performance [2]. - Projected net profit growth for the company is estimated at 449%, 54%, and 37% for 2025 to 2027, with dividends expected to grow at 5% annually [2]. - The current estimated net present value per share is HKD 23.92, with a projected dividend yield of 5.6% for 2025, maintaining a "recommended" rating [2].