[ET Net News Agency, 5 September 2019] UBS Global Research lowered its target price for
Hang Lung Properties (HLP)(00101) to HK$22.5 from HK$25 and maintained its "buy" rating.
The research house views HLP as the best name to capture strong luxury spending in China
after the recent sharp renminbi depreciation and value-added tax (VAT) cut.
UBS expects a 13% China rental income CAGR in 2018-21, mainly due to (1) strong organic
growth of its retail portfolio, (2) completion of Grand Gateway 66 renovation by 2020, and
(3) rental contribution from its upcoming shopping malls/offices in Kunming, Wuxi (H219)
and Wuhan (2020). (KL)