Jefferies, a global investment banking firm, has given Hysan Development a “buy” rating with a target price of HK$23, according to a recent research report. The report highlights the company’s impressive first-half performance, with better-than-expected basic profits and signs of improvement in the retail business.
One notable aspect of Hysan’s performance is the significant increase in turnover rent, which grew by 67% year-on-year. This indicates strong sales and leasing activities within the company’s properties. Additionally, while office occupancy rates have faced some pressure, they have been picking up recently.
Despite concerns in the market about a potential decrease in dividend per share, the report points out that it remained flat year-on-year. This suggests that Hysan’s financial stability and performance were better than anticipated. The report attributes this to the positive impact of the asset enhancement project (AEI) on performance, as well as cost-saving measures undertaken by the company.
Furthermore, the report reveals that Hysan’s finance costs were lower than expected. Jefferies anticipates that the management will provide additional information on various aspects, including plans for retail recovery, the outlook for the office sector, dividend policies, and capital spending, during an upcoming meeting.
It’s important to note that the information provided in this news article should not be considered as investment advice. The article serves as a reference for readers and does not have any guiding role. Investors are reminded that the stock market is inherently risky, and caution should be exercised when making investment decisions.
Source: Zhitong Finance Network