[ET Net News Agency, 8 June 2020] Goldman Sachs said it is not entirely surprised by
Hang Lung Properties' (HLP)(00101) profit warning, given the investment properties heavy
nature of their business and the weak operating environment for Hong Kong retail property,
and also lower RMB FX versus HKD in 2020.
The research house noted that some peers announced/commented on similar trends,
including Link REIT (00823), Hysan Dev (00014), and Mapletree Northern Asia Commercial
Trust, among others.
For HLP, while Goldman sees downside risks given ongoing uncertainties in HK's rental
market, it thinks HLP will continue to see improvement in Mainland China operations and
with additional contributions from new openings, will likely see a V-shape China retail
recovery, partly offsetting a still-weak Hong Kong.
Goldman maintained its "neutral" call on HLP, with an unchanged target price of HK$19.
(KL)