Hang Lung Properties Rent Selection
The short-term market speculation has stabilized the performance of real estate stocks. However, for the future consumption market in China and Hong Kong, the property renting stocks may be seen in the middle of the line.
Hang Lung Properties (00101) does not have a bright performance on the surface. However, from its major shareholder’s annual increase in holdings to the latest 57.03% equity, together with the parent company’s holdings, it is true that there is no silver in this place. feel.
From its 2018 interim results, it was included in the property revaluation gains to earn 22% to 4.689 billion yuan, and earnings per share was 7.04 yuan, but operating profit decreased 19% to 3.682 billion yuan. The basic net profit attributable to shareholders was 2.319 billion yuan and the earnings per share was 0.52 yuan. The net asset value per share was 31.9 yuan, reflecting more than 50% of its asset discount.
Continue to renovate the property to increase revenue
During the period, property rentals were subject to fluctuations in revenue from the refurbishment of the shopping malls. For example, Shanghai Henglong Plaza and No. 9 Kingston Street in Causeway Bay completed the refurbishment and upgraded returns. However, the optimization of the Shanghai Harbour Plaza and the Peak Galleria in Hong Kong led to a decrease in revenue. However, the overall rental rate is relatively stable.
As for property sales, the decrease in residential sales has declined. As the prospects for retail consumption in China and Hong Kong are not bad, the Group continues to contribute to the increase in rental income from the renovation of properties. In addition, the Group has obtained a gold land in Hangzhou for RMB 10.7 billion in the middle of this year, which will help to upgrade large-scale integrated commercial projects. The Group’s overall financial position is good, with a net debt-to-equity ratio of 5.4%. The company is also preparing to sell more Hong Kong. Residential unit.