[ET Net News Agency, 29 September 2020] HSBC Global Research lowered its target price
for Champion REIT (02778) to HK$4.4 from HK$4.6 and maintained its "hold" rating.
The research house said office rental decline continued in 3Q, but signs of moderation
were seen in various districts. HSBC sees a high risk of negative reversions to kick in
for office landlords despite their actively managed lease expiry profiles.
HSBC revised down its net property income for FY2020-22 by 0.6-2.9% and DPU by 0.4-3.7%,
incorporating our latest HK office assumptions. It thinks the resurgence of COVID-19 cases
in Hong Kong could fuel more uncertainties and downward rental pressures to the mall.
While its Three Garden Road office could continue to deliver a stable rental income,
HSBC sees a high risk of negative rental reversion to kick in. As a result, it would take
much longer for Champion REIT to regain DPU growth momentum and there will be limited
share price catalysts. (KL)
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02778 CHAMPION REIT
Nominal 
1.770 +0.050 (+2.907%) Others
29/09/2020 17:56
{I-bank focus}HSBC lowers Champion REIT (02778) to HK$4.4
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