The analyst rating for HANG LUNG PPT (00101.HK) is based on several key factors highlighted in the article:
1. Recovery of Tenant Sales: The company's FY25 results showed a significant recovery in tenant sales in China, with a record-breaking growth of 18% year-over-year in the fourth quarter, which exceeded the 10% growth in the third quarter.
2. Positive Management Outlook: The management's expectation of mid-single-digit percentage growth in tenant sales for FY26 indicates continued strong performance.
3. Valuation Metrics: HANG LUNG PPT is currently trading at a 66% discount to net asset value, with a price-to-book (P/B) ratio of 0.3 times and a dividend yield of 5.5%. These metrics suggest that the stock is undervalued.
4. Potential for Revaluation: JPMorgan is confident that the ongoing recovery in tenant sales will lead to a revaluation of the stock, which supports their bullish stance.
5. Target Price Increase: JPMorgan has raised its target price from HKD11.5 to HKD12, reinforcing their positive outlook on the stock.
Overall, these factors contribute to the "Buy" rating from Citi and the reiteration of HANG LUNG PPT as a top pick by JPMorgan.
