Ge Long Hui·2026-02-02 03:25Core Viewpoint - Morgan Stanley's report indicates that the performance for the fiscal year 2025 confirms the recovery of tenant sales for Hang Lung Properties, with a year-on-year growth of 18% in Q4 2025, marking a historical high, surpassing the 10% year-on-year growth in Q3 2025 [1] Group 1 - The management anticipates a mid-single-digit percentage growth in tenant sales for the fiscal year 2026, with positive momentum maintained as of January 2026 [1] - Hang Lung Properties is currently undervalued based on a 66% discount to net asset value, a price-to-book ratio of 0.3, and a dividend yield of 5.5%, with upward risks starting from the fiscal year 2027 [1] - The sustained recovery of tenant sales in mainland China is expected to drive a revaluation of Hang Lung Properties, leading to an increase in the target price from HKD 11.5 to HKD 12, maintaining its status as a preferred choice [1]