[ET Net News Agency, 5 March 2021] HSBC Global Research lifted its target price for
Wharf REIC (01997) to HK$49.7 from HK$49.2 and maintained its "buy" rating.
The research house said Wharf REIC's FY2020 underlying profit of HK$7.5bn was largely
in-line with HSBC's forecast. HSBC thinks investors should look beyond the current
weakness.
Management expects a lower rent concession in 2021 compared to last year (HK$2bn in
2020). HSBC views Wharf REIC as a key beneficiary of the ongoing retail sales recovery. It
revised up its FY2021-22 earnings by 1.2-2.3% to reflect lower interest expenses coupled
with slightly higher retail rental income. (KL)