Ge Long Hui·2025-10-10 05:47Core Viewpoint - UBS reports that Hang Lung Properties' management revealed a 10% year-on-year growth in tenant sales in mainland China for Q3, reversing the declines of -7% in Q1 and -1% in Q2 [1] Group 1: Sales Performance - Q3 tenant sales in Shanghai Hang Lung Plaza and Port 88 increased by 8% and 31% year-on-year, respectively, showing improvement compared to the first half of the year [1] - Overall tenant sales in mainland China for Q3 remain 10% lower compared to 2023, but have improved from a 16% decline in the first half of the year [1] Group 2: Golden Week Performance - The sales growth trend continued into the National Day Golden Week, with a 15% year-on-year increase in tenant sales during the first four days and a 3% increase in foot traffic [1] - The overall sales growth is primarily driven by domestic champion brands, while traditional luxury brand tenant sales recorded slight growth from July to August [1] Group 3: Future Expectations - With the anticipated openings of the Old Shop Golden and Chanel flagship stores at the end of October and November, respectively, tenant sales growth at Shanghai Hang Lung Plaza is expected to accelerate further [1] - UBS expects the stock price to respond positively to the strong sales performance and maintains a "Buy" rating for Hang Lung Properties with a target price of HKD 9.6 [1]