希慎兴业：转型之路迎来丰收-20250221

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price raised from HKD 13.00 to HKD 14.00 [6][3][17]. Core Insights - The company reported a core profit growth of 6.8% for 2024, exceeding expectations by 7%, and maintained a stable dividend of HKD 0.81 per share, resulting in a total dividend of HKD 1.08 for the year [1][3]. - Total revenue for 2024 increased by 6.2% to HKD 34.09 billion, supported by a 9.8% growth in retail rental income due to the opening of newly renovated luxury brand flagship stores [1][2]. - The company’s financing costs decreased by 5.9% year-on-year, primarily due to exchange gains from the depreciation of the Renminbi, which offset the increase in total debt and weighted average interest rates [1][3]. Financial Performance Summary - For FY2024, total revenue is projected at HKD 34.09 billion, with a year-on-year growth of 6.2% [4][11]. - Net profit is expected to reach HKD 1.96 billion, reflecting a 6.8% increase compared to the previous year [4][11]. - The company’s net debt increased by 2% in the second half of 2024, reaching HKD 24.30 billion, resulting in a net gearing ratio of 51.1% [1][3]. Future Outlook - The management highlighted the success of transformation initiatives, including the optimization of shopping mall operations and the opening of over 10 new luxury brand flagship stores, which are expected to enhance rental income [2][3]. - The company plans to complete the expansion of the Lee Garden Phase 8 by 2026, which is anticipated to increase the total area of the Lee Garden district by 30% [2][3]. - Earnings forecasts for 2025-2026 have been adjusted upward by 7.7%-9.5% to reflect the anticipated higher income from the company's renewal initiatives [3][13].