[ET Net News Agency, 25 July 2019] Goldman Sachs maintained its target price for
Champion REIT (02778) unchanged at HK$6 but downgraded its rating from "neutral" to "sell"
given the weaker office leasing demand trend coupled with a relatively high level of
valuation.
The research house saw office rentals soften in 2Q and since then amid concerns on trade
wars which affected the Chinese corporates' leasing demand. This, coupled with evolving
supply/demand dynamics in micro-markets, means Goldman expects the level of vacancy to
start edging up, potentially bringing more downside to rental growth into 2020.
It sees Champion REIT as having a relatively higher-than-peers level of lease expiry in
2019/2020 at 46% of the entire Three Garden Road project, which may expose the company to
more pricing risks in the near-term if office leasing demand continues to be weak. (KL)
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02778 CHAMPION REIT
Nominal 
1.740 0.000 (0.000%) Others
25/07/2019 11:18
[I-bank focus]Goldman lowers Champion REIT (02778) to "sell"
| Remark: | Real time quote last updated: 25/04/2024 08:31 |
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