Core Viewpoint - Credit Lyonnais reports that Hang Lung Properties (00101) has met expectations for its first-half performance, maintaining its interim dividend despite a decline in luxury goods sales impacting overall tenant sales in the first half of 2025 [1] Group 1: Financial Performance - Hang Lung's tenant sales in mainland China have shown continuous improvement since the fourth quarter of last year, although overall sales are still affected by a decline in luxury goods sales [1] - The target price for Hang Lung has been raised from HKD 5.4 to HKD 7.7, with the net asset value (NAV) discount narrowing from 78% to 67% due to clearer expectations of interest rate cuts by the Federal Reserve and continuous improvement in tenant sales [1] Group 2: Market Sentiment and Future Outlook - The weak market sentiment and normalization of outbound tourism have led Credit Lyonnais to predict a continued decline in luxury goods sales over the next 12 months [1] - Positive catalysts for Hang Lung include potential over-expectation in interest rate cuts by the U.S. Federal Reserve, which could trigger a reassessment of high-yield stocks like Hang Lung [1] - Negative catalysts include weaker-than-expected tenant sales in China, which could lead to profit pressure and impact the ability to maintain absolute dividends and deleverage [1]

Core Viewpoint - Credit Suisse's report indicates that Hang Lung Properties' performance in the first half of the year met expectations, with the interim dividend remaining unchanged. However, overall tenant sales are expected to be impacted by a decline in luxury goods sales in the first half of 2025 [1] Group 1: Company Performance - Hang Lung Properties' mid-year performance aligns with expectations, maintaining its interim dividend [1] - Tenant sales in mainland China have shown continuous improvement since Q4 of the previous year, but are still expected to be affected by declining luxury goods sales [1] Group 2: Market Outlook - Credit Suisse anticipates that luxury goods sales will continue to decline over the next 12 months due to weak market sentiment and normalization of outbound tourism [1] - The target price for Hang Lung Properties has been raised from HKD 5.4 to HKD 7.7, while maintaining a "Hold" rating [1] Group 3: Catalysts - Positive catalysts for Hang Lung include potential reassessment of high-yield stocks like Hang Lung if the US Federal Reserve's interest rate cuts exceed expectations [1] - Negative catalysts include weaker-than-expected tenant sales in mainland China, which could lead to profit pressure and impact the ability to maintain absolute dividends and deleverage [1]