CICC: Maintains Outperform Rating on Hang Lung Properties (00101) with a Target Price of HKD 9.5

According to the Zhitong Finance APP, China International Capital Corporation (CICC) has released a research report stating that, based on a lowered assumption of interest capitalization rates and the company's cautious impairment provisions for property sales in the first half of 2026, the anticipated basic net profit attributable to shareholders for Hang Lung Properties (00101) for the years 2026-2027 has been cut by 6% and 6%, down to HKD 3.02 billion and HKD 3.10 billion (a year-on-year change of -6% and +3%). However, this adjustment is non-cash in nature and does not alter the company's ability to distribute dividends, which is showing a slight improvement trend. The rating of outperforming the industry and the target price of HKD 9.50 have been maintained, reflecting a 5.5% target dividend yield for 2026, a core price-to-earnings ratio of 15 times for 2026, and an upside potential of 30%. Currently, the company is trading at a projected dividend yield of 7.1% for 2026 and a core price-to-earnings ratio of 12.6 times for 2026, which is close to the +1 standard deviation level since 2010, indicating dividend value.