CITIC Lyon: Raises SEAZEN (01030) target price to 3.3 Hong Kong dollars, maintains "outperform the market" rating.
This line indicates that, calculated by rental income, New City Development has become the third largest listed rental company in China, behind only Henderson Land Development (00016) and China Resources Land (01109).
CICC Lion released a research report stating that it has raised the target price of SEAZEN (01030) by 13%, from 2.92 Hong Kong dollars to 3.3 Hong Kong dollars, while maintaining an "outperform" rating. The bank believes that the forthcoming measure to spin off two shopping centers to establish a Chinese real estate fund may have disruptive significance, allowing for the release of potential asset value, enhancing portfolio valuation, and reducing financing costs, cutting the company's profit forecast by 27.7%/17%. However, the target price has been raised mainly to extend the valuation to the expected year of 2026.
The bank stated that, based on rental income, SEAZEN has become the third largest listed rental income company in China, behind only SHK PPT (00016) and CHINA RES LAND (01109). Its stable shopping center portfolio in lower-tier cities has become the profit pillar of the group. With weak sales leading to a reduction in development business, profits are mainly derived from high-quality rental income.
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