Company Overview - The company has organized investor visits to Hong Kong to conduct research on local developers and projects [1] - The retail revenue in mainland China has been under pressure, with a year-on-year decline of 14% and a quarterly decline of 11% in Q4 2024 [1] - There are signs of easing pressure in mainland shopping malls, with expectations of a narrowing decline in retail revenue compared to Q4 2023 [1] Mainland Market Insights - The overall consumption environment in mainland China is improving, which is expected to positively impact the company's retail performance [1] - The performance of mid-range shopping malls is anticipated to outperform high-end projects in Shanghai, particularly in competitive cities like Wuhan and Shenyang [1] - Rental income is expected to perform better than retail revenue due to the high fixed rental proportion, although a slight decline in rental income is anticipated for the year [1] Hong Kong Market Insights - The rental income from Hong Kong properties is projected to decline by 9% in 2024 due to adjustments in major tenant lease renewals, with a minor decline of 1-2% when excluding this impact [2] - The company is selling a luxury apartment in the Yu Feng project for HKD 160 million, which may help in capital recovery and stabilizing financial statements [2] - The sales of residential projects in Hong Kong are in a steady selling phase, contributing a smaller overall income and profit [2] Capital Expenditure and Debt Management - Capital expenditure is expected to peak in 2025 as projects in Hangzhou are completed, with a gradual decline anticipated thereafter [2] - The company is likely to continue its scrip dividend plan to alleviate net debt pressure, with a projected increase in net debt ratio by the end of 2025, remaining below 40% [2] Profit Forecast and Valuation - The profit forecast remains unchanged, with an upgraded target price of HKD 8 per share, reflecting a 13.6 times core P/E for 2025 and a 6.5% target dividend yield [3] - The company is currently trading at a 7.5% dividend yield, providing strong attractiveness in the current market environment [3] - The easing of fundamental pressures and the decline in HIBOR are expected to positively impact interest expenses [3]