[ET Net News Agency, 29 December 2020] Citi Research raised its target price for Hang
Lung Properties (HLP) (00101) to HK$26.1 from HK$23.35 and reiterated its "buy" rating.
The research house said generally investors prefer structural growth stories, which
deliver continuous earnings growth with high visibility. Citi expects HLP to be one such
story in 2020-25.
It said that (1) HLP would be a key beneficiary of luxury retail sales repatriating back
to Mainland China; (2) HLP is one of the very few property companies focused on China's
luxury retail property segment, and as such may deserve a premium for its uniqueness; (3)
several new projects like Kunming, Wuhan, and Grand Gateway renovations should contribute
additional growth; and (4) HLP's recurring profits should grow at high single-digit or
more on FY2021 onwards, driving continuous DPS increase. (KL)