DOCSLIB.ORG

Mainland China Property Leasing

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Mainland China Property Leasing REVIEW OF OPERATIONS 49 MAINLAND CHINA PROPERTY LEASING Our Mainland portfolio recorded sequential growth in both retail sales and revenue, mainly resulting from strong luxury spending and new revenue streams from properties commencing operations in the reporting year. Market Landscape Business Overview Despite slowing national GDP growth and broader The sequential growth in retail sales and revenue of market uncertainties due to the ongoing US-China our mainland China portfolio in 2019 was largely due trade dispute, the commercial leasing sector in to the strategic positioning and continuing expansion mainland China had seen strong growth, largely of our properties across the nation. The brand value attributable to the repatriation of spending, especially and emphasis on customer-centricity, service on high-end luxury items. Efforts on the part of excellence, and relationship building has further international luxury brands to narrow the price gap strengthened the positioning of our developments. In between products sold on the Mainland and overseas, our malls, the focus on deepening tenant engagement the depreciation of the Renminbi, and favorable central and customer loyalty through marketing initiatives and government policies, including a reduction in import the introduction of HOUSE 66, our Customer duties, tightening of customs controls at points-of- Relationship Management (CRM) program, to a total of entry, and the enactment of an e-commerce law to six projects in the year served as a significant pull combat parallel imports, have contributed to the rise in factor in attracting interest from new quality brands the domestic consumption of luxury goods. and promoting expansions from our existing tenants. According to the Bain & Company Luxury Study For our office towers and serviced apartments, stable released in November 2019, the global personal luxury growth was achieved despite softening demand. goods market grew 4% to 281 billion euros in 2019, Situated at prime locations with state-of-the-art with mainland China’s luxury market grew the most by facilities, our properties remained the preferred choice 26% at constant exchange rates to reach 30 billion among multinational corporations and industry leaders euros. Chinese customers accounted for 35% of the in the domestic market. The opening of Conrad Shenyang total value of luxury goods globally. at Forum 66 in Shenyang, the first hotel in our mainland China portfolio, serves as a catalyst for The office leasing sector, however, faced its own growth at the adjacent mall and office tower at headwinds with over-supply and moderated demand, Forum 66 and will further strengthen their prime particularly among multinational corporations in many positioning. of the Mainland’s first-and second-tier cities. 2019 Annual Report 50 REVIEW OF OPERATIONS MAINLAND CHINA PROPERTY LEASING 2019 also signified a major milestone for Hang Lung At the close of 2019, our mainland China portfolio had with the commencement of construction at the fared exceptionally well in the face of a competitive Westlake 66 site in Hangzhou, the Company’s environment and economic jitters. It is well positioned 11th project in mainland China. Situated in the prime to continue its growth trajectory with a focus on the location of Bai Jing Fang in the Xiacheng District of core elements that have established it as a significant Hangzhou, Westlake 66 will be developed into a and successful presence in markets across the landmark commercial complex comprising a world- Mainland. class shopping mall, five Grade A office towers, and a luxury hotel. The project is scheduled for completion in phases from 2024, involving an estimated investment of around RMB 16 billion. Year-on-Year Growth of Our Mainland China Leasing Revenue (in RMB terms) Overall Outside Shanghai Shanghai 11% 19% 7% Gross Floor Area of Our Mainland China Investment Properties (excluding car park area) Completed Properties under Properties Development million million 2.03 square meters* 1.36 square meters# * For a detailed breakdown of gross floor area of our completed # For a detailed breakdown of gross floor area of our properties properties, please refer to table “C. Major Investment under developments, please refer to table “A. Major Properties Properties” on page 75 under Development” on page 72 Hang Lung Group Limited 51 Over 70 of the world’s most coveted brands showcased exclusive, limited edition products and activities available only to the inner circle of luxury at the Home to Luxury Party Plaza 66, Shanghai In 2019, major reshuffling of brands on the basement Shopping Mall and the third floors was implemented to improve tenant mix and sales performance, with the former Home to over 100 global luxury and dining brands in being upgraded to feature top luxury brands while the Shanghai, Plaza 66 experienced another stellar year of latter was fine-tuned to be more designer fashion- growth following the completion of the major asset label driven. A total of 22 new brands established their enhancement program in 2017. During the reporting presence at the mall, including CELINE (Men’s store)’s year, the mall further strengthened its positioning as first standalone boutique on the Mainland, Byredo and the Home to Luxury with the enhancement of its Yves Salomon’s debut in mainland China, Pronovias’ portfolio of prestigious tenants, along with deepening Asia flagship store, and the first Stella McCartney Kids engagement with its most loyal customers through the boutique in eastern China. The opening of regionally- HOUSE 66 CRM program, leveraging positive market or nationally-exclusive pop-up stores such as those by sentiment to push revenue to new heights. Balenciaga and Maison Kitsune also attracted interest from the market. 2019 Annual Report 52 REVIEW OF OPERATIONS MAINLAND CHINA PROPERTY LEASING Since its launch in September 2018, the HOUSE 66 2020 and the effects of decentralization, particularly in program has presented opportunities for customer the more price-conscious tenant market, will engagement and tenant cooperation on new exciting undoubtedly be felt despite limited office supply in levels with a positive impact on retail sales. Among the Jing’an District. Nonetheless, being the landmark mixed many privileges of membership for the mall’s most development in Shanghai and having completed an distinguished patrons was an invitation to the enhancement of buildings and facilities in 2017, exclusive annual Home to Luxury Party, which saw Plaza 66 shall maintain its competitive edge. close to 3,000 guests enjoying a night of sophistication, entertainment, and luxury. Leveraging Grand Gateway 66, Shanghai technology to enhance customer engagement, the mall Shopping Mall made use of a WeChat mini-program as a personal party guide for guests to find their way through the Grand Gateway 66 maintained its leading position in maze of exciting activities, which included twice-hourly the market despite undergoing a major facelift, which lucky draws and vending machines dispensing special commenced in late 2016 and is making good progress. gifts prepared by tenants. The phased reopening of the shopping mall (the North Building in the fall of 2018 and the basement in Looking ahead, Plaza 66 will continue to enhance its mid-2019), has seen new brands taking up residence, customer-centric initiatives to maximize growth. leveraging buoyant market sentiment, resulting in Despite increased competition in the local market with increased footfall and retail sales since mid-2019. new projects in both Pudong and Puxi, the well- Retail sales achieved double-digit growth of 17% in the established positioning of Plaza 66 provides a solid second half of 2019 versus first-half figures, while the foundation to sustain its momentum with continuing occupancy rate rose to 91% with the addition of efforts to attract new brands and tailor the tenant mix luxury anchor tenants in the South Building including to keep pace with market demand, supported by Louis Vuitton, Gucci, Tiffany & Co., Bottega Veneta, HOUSE 66 to foster customer loyalty. The opening-up and CELINE. of additional retail space through leasable area optimization will provide room for further expansion. Grand Gateway 66 has also shaped its tenant mix to fit Plans are also in place to grasp opportunities for cross- a contemporary luxury demographic. Significant effort promotion between retail and office tower tenants in has been made to acquire new unique merchants order to maximize synergies. including the Starbucks Reserve Princi Bakery Café, which opened its first and only outlet in China in Office Tower February 2019, as well as 15 international brands in The twin Grade A office towers continued to attract the new cosmetic zone on the basement, and leading quality tenants from renowned multinational fashion retailers like Zara and i.t that are popular corporations and leading domestic firms in the fields of among younger customers. financial services, retail, and professional services. The Meanwhile, an increasing number of top luxury brands occupancy rate remained strong amid uncertain will establish their presence at the mall in 2020. economic conditions, standing at 93% at the end of Together with the launch of HOUSE 66 in December 2019. New lettings had been secured from the 2019 and the addition of a host of contemporary professional services sector and the in-house designer brands, the outlook for Grand Gateway 66 is expansion of major anchor tenants like the LVMH promising in the long
Load more

Recommended publications
  • Hang Lung Properties Version 9 | Bloomberg: 101 HK EQUITY | Reuters: 101.HK Refer to Important Disclosures at the End of This Report
    China / Hong Kong Company Guide Hang Lung Properties Version 9 | Bloomberg: 101 HK EQUITY | Reuters: 101.HK Refer to important disclosures at the end of this report DBS Group Research . Equity 31 Jul 2019 BUY Retail sales growth gathering Last Traded Price ( 30 Jul 2019):HK$18.64 (HSI : 28,147) momentum Price Target 12-mth: HK$22.38 (20.1% upside) (Prev HK$20.35) BUY with HK$22.38 TP. The stock is trading at a 49% discount to Analyst our estimated current NAV and offers an attractive dividend yield Jeff YAU CFA, +852 36684180 [email protected] of 4.0% for FY19. Stellar tenants’ sales growth at its retail malls in Ian CHUI +852 36684174 [email protected] Jason LAM +852 36684179 [email protected] China augurs well for reversionary growth. Portfolio expansion and asset enhancement initiatives should provide additional What’s New momentum to drive rental income, offering better earnings quality • Improving retail tenants’ sales to underpin and in turn providing share price upside. HLP is among our preferred landlords. BUY with HK$22.38 TP. reversionary growth Portfolio expansion to lift rental income. The progressive opening • New properties to spice up rental earnings of new properties in Kunming, Wuhan, Wuxi, and Shenyang in • BUY with HK$22.38 TP 2019-20 should give an additional boost to Hang Lung Properties’ recurrent earnings growth, and its ability to raise dividends. Pre- leasing at Spring City 66 in Kunming is progressing smoothly, with Price Relative 88% of retail space already pre-committed. This mall is scheduled to open for business in late Aug.
    [Show full text]
  • Sustainable Development
    SUSTAINABLE DEVELOPMENT Hang Lung is committed to embedding an unwavering culture of sustainability across its business operations and value chain. In 2020, we joined efforts across borders to curb the impact of COVID-19 on our valued employees, customers, and communities. We also established a set of ambitious, long-term sustainability goals and targets to be achieved by 2030. Our key priority is to become a sustainability leader in the real estate industry over the next ten years and beyond. Reporting Approach and Standards greater detail. The sustainability report will follow the The Sustainable Development section of this report Global Reporting Initiative (GRI) Standards and the briefly summarizes the Company’s new sustainability “mandatory disclosure requirements” and “comply framework, goals, targets, and performance in 2020. and explain” provisions of the ESG Reporting Guide Our standalone Sustainability Report 2020 will disclose in Appendix 27 of the Listing Rules. our sustainability policies, metrics, and performance in s ion lat re y it n u S m a fe m , o g c CLIMATE RESOURCE r B Y d e RESILIENCE MANAGEMENT e U N n a n , I , L A a e D P c n n d M I a N h n O e r G a C e l v t h o y g , s p m SUSTAINABILITY a a c e LEADERSHIP e t g n o r t S SUSTAINABLE WELLBEING TRANSACTIONS CU R Coll STOME act aboration and imp Hang Lung Properties Limited 92 SUSTAINABLE DEVELOPMENT Sustainability Priorities, Goals, endorsed a new framework comprising four priorities.
    [Show full text]
  • Hang Lung Group Limited
    Hang Lung Group Limited STOCK CODE: 00010 Hang Lung Group Limited STOCK CODE: 00010 Hang Lung Properties Limited STOCK CODE: 00101 The annual reports of Hang Lung Group Limited (Stock Code: 00010) and Hang Lung Properties Limited (Stock Code: 00101) for the 2019 financial year both embody the Group’s Five Overarching Strategies that are integral in driving sustainable business development: Be Customer Centric, Build Hang Lung Branded Experience, Embrace Technology, Disciplined Execution and Uphold Hang Lung Core Values. The cover images of both reports feature a twinning effect that showcases our two major projects for 2019 – the newly opened Spring City 66 in Kunming, and Peak Galleria in Hong Kong, which was reopened following the completion of its Asset Enhancement Initiative. These are projects that underline the Group’s development strategy, both in mainland China and Hong Kong, and the cover designs highlight the symbiotic relationship between beautiful, unique architecture and the people who use it. World-class properties such as these, designed, built and managed by Hang Lung, show our Five Strategies in action, and enable the Group to fulfil and exceed customers’ expectations. The reports are exquisitely designed, and detail Hang Lung’s concerted effort to strive for excellence and create value for shareholders and stakeholders. CORPORATE PROFILE Hang Lung Group Limited (stock code: 00010) is one of the most established listed companies in Hong Kong with more than 50 years of experience in the property development market. Through Hang Lung Properties Limited (stock code: 00101), we have built a leading reputation as a top-tier property developer in Hong Kong and on the Mainland, with a recognized commitment to quality.
    [Show full text]
  • Hang Lung Properties Limited 2020 Annual Results
    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. HANG LUNG PROPERTIES LIMITED (Incorporated in Hong Kong with limited liability) (Stock Code: 00101) 2020 ANNUAL RESULTS 2020 Annual Results CONTENTS Page Financial Highlights 1 Review of Operations 2 Consolidated Financial Statements 19 Notes to the Consolidated Financial Statements 23 Other Information 34 Glossary 36 2020 Annual Results FINANCIAL HIGHLIGHTS in HK$ Million (unless otherwise stated) RESULTS 2020 2019 Property Property Property Property Leasing Sales Total Leasing Sales Total Revenue 8,911 62 8,973 8,556 296 8,852 - Mainland China 5,277 - 5,277 4,544 - 4,544 - Hong Kong 3,634 62 3,696 4,012 296 4,308 Operating profit 6,437 44 6,481 6,325 162 6,487 - Mainland China 3,468 (8) 3,460 2,938 (2) 2,936 - Hong Kong 2,969 52 3,021 3,387 164 3,551 Underlying net profit attributable to shareholders 4,164 37 4,201 4,338 136 4,474 Net (decrease)/increase in fair value of properties attributable to shareholders (6,772) - (6,772) 1,698 - 1,698 Net (loss)/profit attributable to shareholders (2,608) 37 (2,571) 6,036 136 6,172 At December 31, At December 31, 2020 2019 Shareholders’ equity 138,295 138,669 Net assets attributable to shareholders per share (HK$) $30.7 $30.8 Earnings
    [Show full text]
  • New Projects Under Development
    REVIEW OF NEW PROJECTS UNDER OPERATIONS DEVELOPMENT The Company’s projects under development in mainland China are taking shape in prime locations across five cities, encompassing high-end malls, offices, apartments, and hotels. The two redevelopment projects in Hong Kong are on track. Mainland China Heartland 66, Wuhan This mixed-use development in the center of Wuhan is our largest project in terms of area under construction. It consists of a premier shopping mall, a Grade A office tower, and apartments for sale. Construction works are progressing well despite the COVID-19 outbreak. The office and mall received their occupancy permits in November 2020 and December 2020, respectively. Office tenants commenced their operations in December 2020, and the mall is scheduled to open in March 2021, with tenants lined up for around three-quarters of the leasable space. Efforts to recruit HOUSE 66 members are progressing to forge connections with affluent customers. Construction of the apartments is underway and is scheduled for completion, in stages, from the second half of 2022. Location Total gross floor area* Jinghan Avenue, Qiaokou District, Wuhan 308,528 square meters Main Usage Expected year of completion 2020 onwards *Including gross floor area above and below ground (excluding car park area) Commercial Office Apartments for Sale Hotel 71 2020 Annual Report REVIEW OF OPERATIONS NEW PROJECTS UNDER DEVELOPMENT Mainland China Center 66, Wuxi (Phase 2) Phase two of the development comprises three towers, two of which will be developed into luxury apartments for sale, and the other will be a hotel that complements Center 66’s existing two office towers and shopping mall.
    [Show full text]
  • We Do It Well HANG LUNG HANG LUNG GROUP LIMITED PROPERTIES LIMITED
    HANG LUNG PROPERTIES LIMITED STOCK CODE: 00101 Annual Report 2020 We Do It Well HANG LUNG HANG LUNG GROUP LIMITED PROPERTIES LIMITED STOCK CODE: 00010 STOCK CODE: 00101 Annual Report 2020 Annual Report 2020 We Do It Well We Do It Well 60 YEARS OF HERITAGE INFINITE POSSIBILITIES 2020 marked the 60th anniversary of Hang Lung Group. Driven by our customer-centric approach to architectural design and service excellence over the past six decades, we have built a thriving portfolio of world-class properties and an exceptionally talented workforce who live up to our core values of sustainability, excellence, openness and integrity. Our rich history is the inspiration behind this year’s theme of “60 Years of Heritage, Infinite Possibilities” – one you will find illustrated throughout the 2020 annual reports for Hang Lung Group Limited and Hang Lung Properties Limited. The number “60” and “∞” symbol featured on this year’s cover pages represent our properties’ unique aesthetic design in Hong Kong and mainland China. The former denotes the milestone anniversary of the Hang Lung Group while the latter represents the infinite possibilities that lie ahead in the next 60 years – a sentiment also reflected in the close connection between the “6” and “0” on the Hang Lung Group report cover. Inside the covers, photos depicting our world-class properties and talented people – the backbone of our 60 years of growth and success – are masterly incorporated throughout the pages of both reports. Linking up different sections are dividers themed on our core values, which are designed as icons that are inspired by the meaning of the values and our properties’ signature design features.
    [Show full text]
  • Press Release 新聞稿
    Press Release 新聞稿 For immediate release Precautionary Measures for Hang Lung Annual General Meetings on April 29 (Hong Kong, April 14, 2020) Hang Lung Properties Limited (stock code: 00101) and Hang Lung Group Limited (stock code: 00010) (collectively the “Companies”), will hold their Annual General Meetings (“AGMs”) on April 29, 2020 at 10:00am and 11:00am respectively at Conrad Hong Kong. In view of the COVID-19 pandemic and the measures undertaken by the Hong Kong government, and to safeguard the health and safety of our shareholders, the Companies strongly recommend shareholders to exercise their voting rights by appointing the Chairman of the AGM as their proxy to vote on the relevant resolutions at the AGM, as an alternative to attending in person. Physical attendance is not necessary for the purpose of exercising the voting rights. The deadline to submit completed proxy forms is Monday, April 27, 2020 at 10:00am and 11:00am for the shareholders of Hang Lung Properties and Hang Lung Group respectively. Completed proxy forms must be returned to the registered office of the Companies at 28th Floor, 4 Des Voeux Road Central, Hong Kong or the share registrar of the Companies, Computershare Hong Kong Investor Services Limited at 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong. The Companies will implement the following precautionary measures at both AGMs to protect the health and safety of attending shareholders: Compulsory body temperature checks and health declarations; Shareholders should bring and wear their own face masks throughout the meeting; Seating at the AGM will be arranged so as to reduce interaction between participants.
    [Show full text]
  • Hang Lung Properties Version 10 | Bloomberg: 101 HK EQUITY | Reuters: 101.HK Refer to Important Disclosures at the End of This Report
    China / Hong Kong Company Guide Hang Lung Properties Version 10 | Bloomberg: 101 HK EQUITY | Reuters: 101.HK Refer to important disclosures at the end of this report DBS Group Research . Equity 22 Jan 2020 BUY Higher dividend signals positive earnings Last Traded Price ( 21 Jan 2020):HK$18.24 (HSI : 27,985) outlook Price Target 12-mth: HK$21.66 (18.8% upside) BUY with HK$21.66 TP. The stock is trading at a 50% discount to Analyst Jeff YAU CFA, +852 36684180 [email protected] our estimated current NAV and offers an attractive dividend yield of Ian CHUI CFA, +852 36684174 [email protected] 4.2% for FY20. The company’s retail mall operations in China are Jason LAM +852 36684179 [email protected] going from strength to strength. Improving tenants’ sales growth at What’s New its retail malls in China augurs well for reversionary growth and retail turnover rents. Portfolio expansion should provide additional • FY19 underlying profit grew 9%, 4% ahead of momentum to drive rental income, offering better earnings quality our forecast and in turn supporting share price upside. Maintain BUY with • Final DPS was up 2% to HK$0.59, a positive HK$21.66 TP. surprise Continued healthy retail sales growth translating into sequential • Healthy retail sales growth from China retail rental income improvement. Despite a higher comparison base, properties, coupled with portfolio expansion, retail sales at Shanghai Plaza 66 grew 21% in FY19. Retail malls supports higher rental income in China outside Shanghai posted favourable growth in tenants’ sales. In particular, retail sales at Shenyang Palace 66, Wuxi Center 66, and • Maintain BUY with HK$21.66 TP Dalian Olympia 66 jumped 20-29% y-o-y.
    [Show full text]
  • 2018 Annual Report
    Building a Sustainable Future ANNUAL REPORT 2018 HANG LUNG GROUP LIMITED STOCK CODE: 00010 Building a Sustainable Future Hang Lung is committed to building a sustainable business model with two of its integral elements – “hardware” and “software”. The twin covers of the 2018 Annual Reports of Hang Lung Group (stock code: 00010) and Hang Lung Properties (stock code: 00101) highlight our unparalleled “hardware”– the unique architectural and design features of our world-class properties. These outstanding qualities are the essential complement to the disciplined execution of acquiring prized sites ideal for properties developed to the highest standards. Meanwhile, companion sections in the annual reports focus on our exceptional “software” – customer service, shopping experience, corporate governance, social responsibility and sustainability initiatives. Excellence in these areas is key to our customer-centric strategy that gives the highest priority to putting people first. Palace 66 Riverside 66 Forum 66 Grand Parc 66 Shenyang Tianjin Shenyang Gateway 66 Jinan Shanghai We Do It Right We Do It Right is a business philosophy that extends As Hang Lung’s business continues to grow, beyond our core business and embraces the initiatives we will continue to maintain our high standards we undertake on behalf of our staff, the community in order to become a highly admired national and the environment. We believe this is fundamental commercial property developer in Hong Kong and to our success and helps us win the trust of our on the Mainland. stakeholders. In this annual report we describe the progress we have made during the year, using meaningful metaphors to signify our efforts to create unmatched value for our cherished shareholders, tenants and customers.
    [Show full text]
  • Hang Lung Group Limited Stock Code : 00010 Overview HANG LUNG GROUP LIMITED
    Hang Lung Group Limited Stock Code : 00010 Overview HANG LUNG GROUP LIMITED CONTENTS 3 About this Report 4 Message from our Chief Executive Officer 5 Sustainability At-a-Glance 2020 8 Journey towards Leadership 10 About Hang Lung Group 12 Sustainability Governance 21 Climate Resilience 27 Resource Management 34 Wellbeing 46 Sustainable Transactions 55 Memberships and Charters 56 Performance Tables 64 Independent Assurance Opinion Statement 67 Independent Practitioner’s Assurance Report for Green Bonds and Green Loans 70 Content Indices for Reporting Guidelines Stock Code 00010 Registered office 28th Floor, Standard Chartered Bank Building, 4 Des Voeux Road Central, Hong Kong Tel +852 2879 0111 Email [email protected] Web www.hanglunggroup.com Report www.hanglung.com/group/sustainability © Hang Lung Group Limited 2021 If there is any discrepancy or inconsistency between the English and the Chinese versions, the English version shall prevail. 1 Sustainability Report 2020 Overview HANG LUNG GROUP LIMITED Our Vision We create compelling spaces that enrich lives Our Mission We pursue sustainable growth by connecting our customers and communities Our Values We live up to our brand motto of We Do It Well by focusing on Integrity Sustainability Excellence Openness 2 Sustainability Report 2020 Overview HANG LUNG GROUP LIMITED About this Report This is the fourth sustainability report (the “Report”) for Hang Lung Group Limited (Hang Lung Group, stock code: 00010) and its subsidiaries (collectively known as “Hang Lung” or “the Group”), including Hang Lung Properties Limited (Hang Lung Properties, stock code: 00101). Hang Lung Group produced and issued this Report to disclose information transparently the Group’s material sustainability topics from January 1, 2020 to December 31, 2020, unless otherwise specified, so our stakeholders can fully understand our impacts.
    [Show full text]
  • HLG & HLP Publish Annual Reports
    For immediate release Chairman Ronnie Chan Details Mainland Strategy in New Annual Reports Themed “Expanding Horizons” and “Soaring Perspectives” (Hong Kong, March 14, 2012) Hang Lung Group Limited (HKSE stock code: 10) and Hang Lung Properties Limited (HKSE stock code: 101) today published their annual reports for the financial year of 2011 following their change of financial year-end from June 30 to December 31. As such, the reports only cover a six-month period from July 1, 2011 to December 31, 2011. In the reports entitled “Expanding Horizons” and “Soaring Perspectives”, Mr Ronnie C. Chan, Chairman of Hang Lung Group Limited and Hang Lung Properties Limited, has elaborated on the critical moves that were taken over the past six months, including but not limited to the acquisition of a prime site in Kunming that enables the companies to extend their presence into the southwestern part of mainland China. Mr Chan has also unveiled the strategic initiatives that are being planned and taken by the companies in the light of the changing market landscape, in particular developing mix-use projects and the treatment of residential elements in their mainland project portfolio, which should represent a new area of value creation. He is confident of the companies’ prospects as they are well-positioned to grasp development opportunities and meet the challenges ahead. Page 1 of 5 With the forthcoming opening of the first phase of Forum 66 in the fourth quarter of 2012, another world-class shopping center is set to create a brand new shopping experience for customers seeking quality lifestyle in Shenyang and the surrounding neighborhood.
    [Show full text]
  • Hang Lung Properties (0101.HK) Undervalued As New Level of Rental Growth Approaches; up to Buy Buy
    17 January 2019 | 7:56PM HKT Hang Lung Properties (0101.HK) Undervalued as new level of rental growth approaches; up to Buy Buy Justin Kwok, CFA 0101.HK 12m Price Target: HK$20.00 Price: HK$15.74 Upside: 27.1% +852-2978-0481 | [email protected] Goldman Sachs (Asia) L.L.C. We believe HLP’s resilient fundamentals and pathway to earnings Colin Yao +852-2978-1474 | [email protected] growth are underappreciated by the market based on current trough Goldman Sachs (Asia) L.L.C. valuations due to concerns about the macro environment and the Hangzhou project acquisition last May. We see the stock re-rating as the market begins to factor in HLP’s strong positioning within the industry. We upgrade the stock to Buy, from Neutral, with 27% upside to our revised 12-month target price of HK$20.00, Key Data __________________________________ highlighting three points that we believe create a compelling Market cap: HK$70.7bn / $9.0bn Enterprise value: HK$87.9bn / $11.2bn investment argument. 3m ADTV: HK$62.3mn / $8.0mn Hong Kong Hong Kong Property 1. Internal growth drivers—HLP is about to embark on another M&A Rank: 3 period of active project completions with a substantial increase in GS Forecast ________________________________ 12/17 12/18E 12/19E 12/20E rental floor space in the next two years vs. flat GFA since 2015. In Revenue (HK$ mn) New 11,199.0 9,356.8 9,920.1 9,985.5 our view, this will help drive its rental revenue to a 12% CAGR in Revenue (HK$ mn) Old 11,199.0 9,922.1 9,773.1 9,412.8 EBITDA (HK$ mn) 7,462.0 6,092.7 6,649.8 6,644.2 2018E-2020E (from 4% in 2013-2017).
    [Show full text]