Ge Long Hui·2025-12-11 13:16Company Dynamics - Hang Lung Properties announced a collaboration with Wuxi Liangxi Urban Development Company to acquire the operating rights of a landmark commercial project adjacent to Wuxi Hang Lung Plaza through a long-term lease [1] - This project marks another significant advancement under the "Hang Lung V.3" strategy, which focuses on core cities, high capital efficiency, and selective reinvestment in existing projects [1] Strategic Insights - The expansion into Wuxi aligns with the company's strategy to consolidate its market position with relatively low investment in a competitive landscape [1] - The company has announced light-asset expansions or upgrades in four projects: Kunming, Shanghai, Hangzhou, and Wuxi, which are expected to enhance retail space and improve customer experience [1] Performance Expectations - Wuxi Hang Lung Plaza has shown strong performance since its opening in 2013, with a successful transition to luxury retail since 2019, leading to significant growth in retail sales and rental income [2] - The new project is expected to increase the retail area of Wuxi Hang Lung Plaza by 38% (or 47,000 square meters) and introduce over 80 new brands, further strengthening its competitive advantage in dining, fashion, and lifestyle experiences [2] Financial Projections - The company maintains its profit forecasts and continues to rate the stock as outperforming the industry, with a target price of HKD 9.46 per share, corresponding to a 15x core P/E for 2025 and a 5.5% dividend yield [2] - The stock is currently trading at a 14.5x core P/E for 2025 and a 5.8% dividend yield [3]