Lyon: Goldman Sachs lowers the target price of Kai Tak Development (01997.HK) to 18.8 Hong Kong dollars and maintains a "neutral" rating.

According to the Smart Financial News App, a report released by Lyon stated that retail sales in China's Hong Kong in the first two months of this year fell by 7.8% year-on-year, despite a 7.4% increase in visitor arrivals. The bank believes that the decline is mainly driven by weak consumer confidence and continued outflow of consumption. Lyon believes that US tariffs may harm retail sales in Hong Kong, although in the long term, the US federal interest rate is expected to decline. The bank predicts that retail sales in Hong Kong, China will decrease by 5% in 2025, therefore adjusting the net profit forecast for Kowloon Development (01997.HK) for the 2025 and 2026 fiscal years by 5.2% and 5.4% respectively. The target price has been lowered from 20 Hong Kong dollars to 18.8 Hong Kong dollars due to the expected reduction in dividends, and a "Hold" rating is maintained.