UBS: Raises Hang Lung Properties (00101) target price to HK$9.6. Potential asset spin-offs could unlock value.

UBS released a research report stating that potentially splitting assets into private REITs could change investors' views on HANG LUNG PPT (00101). The stock's P/B ratio is only 0.29 times, and any assets divestment would help narrow its per-share net asset value (NAV) discount. Potential asset divestment could also help Hang Lung reduce its debt; Hang Lung can generate income continuously through private REITs and have a private REIT platform for future capital recovery. UBS raised HANG LUNG PPT's target price by 14%, from HK$8.4 to HK$9.6, maintaining a "Buy" rating and adjusting earnings forecasts for the next two years by -4% and +3% to reflect the latest mid-term performance and the completion schedule of the Hangzhou shopping mall.