Citibank: Raises target price of SEAZEN (01030) to 3.2 Hong Kong dollars, maintains "buy" rating.

Citigroup released a research report saying that they have raised the target price of SEAZEN (01030) by 6% to 3.2 Hong Kong dollars, maintaining a "buy" investment rating. This is mainly based on the clarification of the balance sheet, with a discount of 30% on the net asset value (previously 20%). The bank pointed out that after SEAZEN issued $355 million in three-year bonds in March 2026 and new shares in February 2026 (diluting 2.8%), the balance sheet has stabilized. The retirement of its CEO, Lv Xiaoping (65 years old), has not affected the investment outlook. The bank expects that with the expected depreciation of losses on the profit and loss statement in 2026, its profitability will improve. MSCI upgraded its ESG rating from "BBB" to "A". Citigroup is optimistic about SEAZEN: i) it is expected that the recurring revenue in 2026 will reach 14.5 billion Chinese yuan (an increase of 4% year-on-year), and the profits of its 178 shopping centers (with 5 new ones added in 2026) will reach 3-4 billion Chinese yuan; ii) tenant sales in 2025 increased by 17% year-on-year; the debt size is moderate (55 billion Chinese yuan), compared to its intellectual property rights valued at 123 billion Chinese yuan, the debt is manageable; its transformation has been effective, and the application for a Real Estate Investment Trust (REIT) was approved by the China Securities Regulatory Commission and the Shanghai Stock Exchange on March 6th, with the issuance of 6.16 billion Chinese yuan in asset-backed securities (ABS) in November 2025.