Ge Long Hui A P P·2025-10-16 03:02Core Viewpoint - Morgan Stanley raised the target price for Hang Lung Properties from HKD 9 to HKD 10.5 due to improved fundamentals and a narrowing NAV discount from 60% to 50, maintaining an "Overweight" rating [1] Group 1: Retail Performance - The mainland retail business of the group is showing signs of recovery, with tenant sales in Shanghai's Plaza 66 and Hang Lung Plaza increasing by 31% and 8% year-on-year in Q3, compared to 10% growth and an 8% decline in the first half [1] - During the National Day Golden Week, overall tenant sales in mainland malls grew by 15% year-on-year in the first four days, with Wuhan Hang Lung Plaza and Shanghai Plaza 66 recording year-on-year increases of over 70% and 50%, respectively [1] Group 2: Key Catalysts - The luxury goods group LVMH indicated an improvement in mainland operations in Q3, alongside the establishment of a gold shop at Plaza 66 and the opening of Hang Lung Plaza in Hangzhou, which are seen as key catalysts [1] - Hang Lung Plaza in Hangzhou has already pre-leased 83% of its retail space and 27% of its office space, expected to contribute significantly by 2027 [1]