Zhi Tong Cai Jing·2025-08-14 06:42Core Viewpoint - DBS reported that Wharf Real Estate Investment Company (00004) achieved a 3% year-on-year increase in underlying profit to HKD 2.035 billion, exceeding the bank's expectations due to lower impairment and favorable interest and tax expenses [1] Financial Performance - The underlying profit for Wharf Real Estate Investment Company rose to HKD 2.035 billion, reflecting a 3% increase compared to the previous year [1] - The interim dividend remains unchanged at HKD 0.20 per share [1] Stock Performance and Valuation - DBS downgraded the target price for Wharf Real Estate Investment Company from HKD 25.1 to HKD 24.9, while upgrading the investment rating from "Hold" to "Buy" [1] - The company's stock price has decreased by 6% over the past month, underperforming the market by 9 percentage points [1] - The current stock price is trading at a 60% discount to the bank's assessed net asset value, slightly above the ten-year average discount of 59% [1] Market Sentiment - The bank indicated that if the upcoming residential projects receive a positive market response, it could improve market sentiment towards the stock [1]