JP Morgan: Lowered the target price for HANG LUNG PPT (00101) to HKD 10, with an attractive dividend yield of about 7.1%. Rating: "Overweight."

Goldman Sachs released a research report stating that HANG LUNG PPT (00101) achieved performance in the first half of 2026 as expected, with a reported net profit of HKD 758 million. After excluding a property revaluation loss of HKD 678 million, the core net profit declined by 10% year-on-year to approximately HKD 1.4 billion, mainly due to increased net interest expenses and non-cash inventory provisions related to the Wuhan project. In response to the provisions for the Wuhan project and the latest property project developments, Goldman Sachs lowered its core earnings per share forecast for HANG LUNG PPT from 2026 to 2028 by 5% to 7%, and reduced the target price from HKD 11.5 to HKD 11.3, reiterating a Buy rating. The report indicates that rental income increased by 5% year-on-year during the period, with improvements seen in both mainland and Hong Kong portfolios. Sales from tenants in the mainland grew by 17% in the first half of the year. Out of the 10 existing mainland shopping malls, 7 reported record high tenant sales. Management is optimistic about the business outlook for the second half of the year, expecting tenant sales in mainland shopping malls to maintain high single-digit growth. In terms of residential sales in Hong Kong, the contract sales amount recorded approximately HKD 1.5 billion in the first half of the year. The project at 37 Shoushan Village Road reached an agreement with the government in July regarding the revision of the land grant and supplementary land price. Calculated at a selling price of HKD 90,000 per square foot and a cost of HKD 55,000, the project is expected to generate approximately HKD 6.4 billion in sales revenue and HKD 2.5 billion in pre-tax profit.