


Investment Rating - The industry investment rating is "Positive" and maintained [12] Core Insights - In a development downturn cycle, commercial real estate with stable cash flow and high dividend yield is favored by the market. The report aims to construct a simplified analysis framework to evaluate investment property value uniformly, using the indicator [(investment property value - interest-bearing liabilities) / market value] to assess the undervaluation degree of various companies, and to measure dividend value based on current dividend yield and the security of self-owned business [2][9] Summary by Sections Investment Property Evaluation - The report emphasizes the need for prudent evaluation of investment properties, as the net asset values differ significantly due to varying assessment standards among companies. The price-to-book ratio (PB) is not an objective valuation metric for commercial real estate companies, as most properties are recorded at fair value, leading to a lack of comparability in net assets [6][7] Debt Security and Value Undervaluation - The report analyzes which companies have higher debt security and which may be undervalued. It uses the ratio of estimated investment property value to interest-bearing liabilities, where a higher ratio indicates better asset backing for liabilities. Companies with a high proportion of commercial assets, particularly Hong Kong-based firms, show stronger security [7][8] Dividend Security - The report highlights that Hong Kong-based companies generally have higher dividend rates, even when development business or property valuation impairments affect reported profits. The dividend yield for companies with a high proportion of self-owned business ranges from 5% to 8%. The stability of dividends is assessed by the ratio of self-owned performance to dividend amounts, with a ratio above 100% indicating potential for dividend increases [8][9] Investment Recommendations - The report concludes that certain Hong Kong-based companies, China Resources Land, and some private real estate firms post-risk clearance in development businesses exhibit significant scarcity and should be emphasized in a low-interest-rate environment [9]