HSBC: Raises target price for Swire Properties (01972.HK) and Link Real Estate Investment Trust (00823.HK)

According to a report from Morgan Stanley obtained by the Wise Financial APP, it has lowered its profit forecasts for Swire Properties (01972.HK) for the next two years by 16% to 27%, reflecting the latest retail sales, rental, and occupancy rate assumptions after the company's performance last year. At the same time, the dividend per share forecast has been raised by 6% to 10%, reflecting a gradual dividend growth in the medium term, supported by cash flows from the core investment property portfolio, non-core asset disposals, and sales income from China development projects. The target price for Swire Properties has been raised from HK$16 to HK$18, with a 55% discount to the net asset value in 2025, below one standard deviation from the long-term historical average, as the company believes that there is still a supply-demand imbalance in the office market.