[ET Net News Agency, 29 June 2020] Morgan Stanley expects Hang Lung Properties
(HLP)(00101) to report an underlying profit of HK$2,094mn and EPS of HK$0.47 in 1H, down
6%, mainly due to decline in HK rental.
The research house expects the company to report revaluation loss of HK$3bn in 1H which
is 2% of completed investment properties (IP) value of HK$160bn. This is mainly due to
concerns on the outlook for rent (in HK) rather than cap rate expansion.
Morgan revised down its rental expectations for HK by 2%, 5%, and 6% for 2020/21/22,
respectively. Rental income from China remains unchanged. As a result, its EPS forecasts
moved down by an average of 5% for 2020/21/22.
It maintained its "overweight" rating on HLP, with a target price of HK$20. (KL)