[ET Net News Agency, 5 March 2021] UOB Kay Hian lifted its target price for Wharf REIC
(01997) to HK$41 from HK$35.22 and upgraded its rating to "hold" from "sell" in the hope
of a recovery in late 2021.
The research house said WREIC's 2020 underlying profit of HK$7,477m was in line with
expectations. UOBKH adjusted its 2021/22 earnings forecasts by -3%/+10% mainly to factor
in softer rents and lower occupancy rates in the near term and a quicker rebound in 2022.
UOBKH believes the worst is over for the retail sector, and a meaningful albeit bumpy
recovery may emerge once the COVID-19 pandemic is contained and international travel
slowly resumes. This could start with the travel bubbles formed with certain countries
like Singapore, as hinted by the Hong Kong government. (KL)