[ET Net News Agency, 28 July 2020] Morgan Stanley lowered its target price for Swire
Properties (01972) to HK$23 from HK$27 and maintained its "overweight" rating.
The research house expects HK office rent to drop further by 12% in 2H, after falling
13% in 1H. Hence a total of 25% decline from 2019 to 2020. However, Morgan expects it to
recover by 2.5% p.a. in 2021 and 2022.
It cut Swire Properties' 2020 EPS forecast by 8%, mainly driven by greater losses for HK
hotel division as a result of prolonged Covid-19 outbreak and lack of tourist arrivals to
HK. Morgan also expects no property sales contribution from Singapore projects EDEN in
2020. (KL)