[ET Net News Agency, 31 July 2018] HSBC Global Research tweaked its target price for
Hui Xian REIT (87001) to RMB4 from RMB4.05, and maintained its "buy" rating.
The research house said Hui Xian REIT's 1H DPU of RMB0.1414/unit tracked in-line with
its forecast. HSBC thinks the results reaffirmed the subdued retail trend highlighted in
its previous report.
HSBC said a challenging retail operating backdrop will limit the growth potential of Hua
Xian REIT. That said, current yield does look attractive at 8.2%, based on HSBC's revised
FY2018 DPU estimate.
HSBC revised down its DPU estimates in FY2018/19 by 1.6%/1.2%, respectively, mainly to
reflect a lower rental revenue forecast. (KL)