Company Overview - Company has enhanced confidence in the operational performance of Shanghai Hang Lung Plaza for the second half of the year and next year, based on recent research findings [1] - The third phase of the project, with a total floor area of approximately 3,000 square meters, is expected to open in Q3 2026, expanding the total rentable area to about 32,000 square meters [1] Operational Strategy - The company is actively expanding rentable space and optimizing space usage efficiency through strategies such as converting large shops into smaller ones and improving the connection between office buildings and commercial spaces [1] - The introduction of new brands and flagship stores, including a new three-story Chanel flagship store expected to open in Q4, is anticipated to significantly contribute to retail sales [1] Market Performance - Shanghai Hang Lung Plaza's retail sales showed a gradual improvement in the first half of 2025, with a projected continuation of this trend in the second half, supported by a lower comparative base from the previous year [2] - Marketing activities, including a collaboration with Jellycat and the annual anniversary celebration, are expected to drive customer traffic growth [2] Financial Outlook - The company maintains an outperform rating and has slightly raised the target price by 6% to HKD 9.46 per share, reflecting a 15 times core P/E for 2025 and a target dividend yield of 5.5% [2] - The contribution of Shanghai Hang Lung Plaza to the company's total rental income was approximately 16% in the first half of 2025, providing support for the overall annual performance and dividend payout [2]