Zhi Tong Cai Jing·2025-08-21 08:21Group 1 - Goldman Sachs has adjusted the basic earnings per share (EPS) forecast for Hang Lung Properties (00012) for the fiscal years 2025 to 2027, increasing by 5% for 2025, decreasing by 1% for 2026, and decreasing by 2% for 2027, resulting in EPS estimates of HKD 1.58, HKD 1.80, and HKD 1.80 respectively [1] - The dividend forecast remains unchanged at HKD 1.80, with an expected average payout ratio of approximately 105% over the next three years, compared to an average of about 78% over the past five years [1] - The target price has been slightly reduced by 1.5% to HKD 19.30, while maintaining a "Sell" rating [1] Group 2 - For the first half of the year, Hang Lung Properties reported an EPS of HKD 0.60, representing an 8% year-on-year decline and an 11% decrease compared to the second half of the previous year [1] - The pre-tax income from land recovery during the period was HKD 240 million, a significant drop from HKD 2.5 billion in the same period last year [1] - Excluding one-time gains and the impact of investment property revaluation, the recurring basic EPS was HKD 0.58, down 4% year-on-year and 11% lower than the firm's expectations, primarily due to lower-than-expected profit margins in property development [1] Group 3 - The interim dividend remains at HKD 0.50 per share, aligning with the firm's expectations [1] - As of June 30, 2025, the debt ratio is approximately 21%, unchanged from the end of the previous year; when including parent company loans, the debt ratio rises to about 43%, an increase of 2 percentage points from the second half of last year [1]