Core Viewpoint - The report from CMB International slightly raises the target price for Link REIT (00823) to HKD 49.8 while maintaining a "Buy" rating, citing potential interest rate cuts and inclusion in the Stock Connect as key catalysts in the next 12 months [1] Group 1: Target Price and Ratings - CMB International has adjusted the target price for Link REIT to HKD 49.8, reflecting a slight increase due to anticipated interest rate and discount rate reductions [1] - The firm maintains a "Buy" rating on Link REIT, indicating confidence in the stock's performance [1] Group 2: Financial Projections - The company has slightly lowered its per unit distribution forecasts for the fiscal years 2026 and 2027 by approximately 1.5% and 2.9% respectively, while introducing projections for fiscal year 2028 [1] - The latest operational data shows a year-on-year decline of 0.8% in sales for Hong Kong retail properties in Q1 of fiscal year 2026, which is slightly below the overall market growth of 0.4% [1] Group 3: Market Conditions and Performance - The decline in sales is attributed to the impact of e-commerce free shipping services on non-essential goods transactions [1] - Despite the sales decline, Link REIT maintains a high retail property occupancy rate of 97.6% and an office building occupancy rate of 99.2% [1] - The company anticipates a negative single-digit percentage for the renewal rent adjustment rate, which may lead to a slight decrease in revenue for fiscal year 2026 [1] Group 4: Financing Costs - The company expects recent declines in HIBOR/SORA/BBSY to help reduce financing costs [1]
交银国际：上调领展房产基金(00823)目标价至49.8港元 维持“买入”