Komo: Reiterates that Hang Lung Properties (00101) is one of the preferred stocks to explore growth momentum with low risk

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that although Hang Lung Properties (00101) may prioritize debt reduction in the next 1 to 2 years, it can still explore growth momentum in a low-risk manner, and reaffirms that Hang Lung Properties is one of the preferred stocks. The reason is that sales of mainland Chinese tenants continued to improve, and sales in the fourth quarter are expected to continue the 10% year-on-year increase in the third quarter.

Hang Lung Properties recently announced that it has obtained the right to operate a commercial project located in the center of Wuxi under a long-term lease, which is the fourth expansion under the “Hang Lung V.3” strategy, the company's growth strategy blueprint. Xiaomo said that with reference to the latest rent level at Hang Lung Plaza 66 Shopping Mall, it is estimated that this expansion plan will generate about 200 million yuan of rent revenue per year. Assuming that the company holds 60% of the operating lease shares, and the profit margin is 30%, Xiaoma roughly estimates that this expansion project will contribute about 1% of the annual revenue.