Zhi Tong Cai Jing·2026-01-19 07:16Core Viewpoint - CICC forecasts that the retail sales growth of Hang Lung Properties (00101) in mainland China will continue to recover throughout the year, leading to a narrowing of the decline in property leasing income, which fell by 3% year-on-year in the interim [1] Group 1: Financial Performance - The expected year-on-year decline in basic net profit attributable to shareholders for the full year is projected to narrow to 4%, compared to a 9% decline in the interim [1] - CICC has adjusted the target price upward by 10% to HKD 10.4, reflecting a 17 times price-to-earnings ratio for 2026 and a 5% dividend yield, indicating a 10% upside potential [1] - The forecasts for basic net profit attributable to shareholders for 2025 and 2026 have been reduced by 3% and 4% to HKD 2.97 billion and HKD 3.04 billion, respectively, reflecting a 4% year-on-year decline and a 2% increase [1] Group 2: Dividend and Capitalization - The company is expected to declare a total annual dividend of HKD 0.52 per share, maintaining the same level as in 2024, with HKD 0.12 already distributed in the interim [1] - If considering the adjusted capitalized interest for property leasing basic net profit, the company's operating performance and dividend capacity are expected to continue to recover at a single-digit percentage annual rate starting from 2026 [1]