Core Viewpoint - CICC maintains a "outperform" rating and profit forecast for Hang Lung Properties (00101), raising the target price by 6% to HKD 9.46 per share, reflecting a 15x target core P/E for 2025 and a 5.5% target dividend yield, with an 8% upside potential [1] Group 1: Expansion and Development - The company is actively expanding its leasable area, with the third phase of Shanghai Hang Lung Plaza expected to open in Q3 2026, adding approximately 3,000 square meters to the current 32,000 square meters of leasable area [2] - The opening of the third phase is anticipated to enhance the project’s leasable area, accommodate more flagship stores, and improve customer experience through better space utilization [2] Group 2: Brand Adjustment and Performance - The company expects to see results from brand adjustments within this year, with a new three-story flagship store for Chanel anticipated to open in Q4, potentially contributing significantly to retail sales [3] - New brands such as Rolex have already opened this year, and the company is also introducing experiential brands like DJI and Hasselblad to enhance brand diversity [3] Group 3: Operational Performance Outlook - The retail performance of Hang Lung Properties' mainland shopping centers showed improvement in the first half of 2025, with Shanghai Hang Lung Plaza experiencing a quarterly improvement trend [4] - The company expects the operational performance to continue improving in the second half of the year, supported by a lower comparative base from last year and various marketing activities planned [4] - Shanghai Hang Lung Plaza is crucial for the company's overall performance, contributing approximately 16% to total rental income in the first half of 2025, providing support for annual performance and dividend payout [4]