[ET Net News Agency, 29 January 2021] Citi Research lifted its target price for Hang
Lung Properties (HLP) (00101) to HK$27 from HK$26.1 and reiterated its "buy" rating.
The research house said HLP is transforming from a cyclical to a structural play riding
on the booming China luxury retail growth story. Citi believes HLP will see a continuous
valuation re-rating, driven by (1) a robust 43% retail sales growth in China during 2020,
while management expects double-digit sales growth in 2021; (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 is forecasted to grow at a CAGR of 10% for FY2021-25, driving continuous DPS
increase. (KL)