HSBC: Maintain "Buy" rating on HYSAN DEV (00014) with target price lowered to HK$14.38

DBS Research report released, maintaining a "buy" rating for HYSAN DEV (00014), with the target price lowered from HK$15 to HK$14.38, believing that the stock price has already reflected the negative factors. The report mentioned that with the expansion of the portfolio and completion of renovation projects, HYSAN DEV's rental income is expected to improve. After the renovation of Lee Garden is fully completed, more than 10 flagship stores of renovated and expanded brands will be added to Henderson's luxury retail property portfolio, increasing the area by 40% compared to before. Furthermore, DBS stated that the rental contribution from Lee Garden in Shanghai, acquired by Henderson in 2021, continues to grow, with the pre-commitment rate for office spaces increasing to about 80%. With the new rental contribution from Lee Garden Phase Eight expected to be completed in the second quarter of the 2026 fiscal year, even considering the ongoing negative rental returns from its Hong Kong office portfolio, Henderson's rental income is expected to increase in the coming years.