Hysan Development (14 HK): Buy: Growing resilience underpinned by improved retail momentum

研报英文原文证据摘录

Hysan Development (14 HK): Buy: Growing resilience underpinned by improved retail momentum

office market backdrop. 52-WEEK PRICE (HKD)

Capital recycling ahead of schedule. Hysan’s five-year HKD8bn capital recycling 25.00

programme (announced last year) appears to be progressing faster than we 19.00

expected. We estimate c.90% of this target (on an accrual, contracted sales basis)

13.00

has been achieved within the first 10 months. It is driven by sales at Bamboo Groves 07/25 01/26 07/26

launched last year and the recent good sell-through at its JV residential project One Target price: 23.00 High: 23.16 Low: 14.64 Current: 17.31

Victoria Cove (25% owned). Its net debt should gradually decline in the next Source: LSEG IBES, HSBC estimates

1-2 years upon the collection of cash proceeds.

Raymond Liu*, CFA

Improved dividend visibility. Clearer deleveraging visibility should, in our view, Analyst, Asia Real Estate and Conglomerates

The Hongkong and Shanghai Banking Corporation Limited

strengthen confidence in Hysan’s dividend outlook. With recycling proceeds coming raymond.w.m.liu@hsbc.com.hk

through earlier than expected and development capex nearing a peak, free cash flow +852 2996 6743

should improve progressively. In addition, the partial repurchase of its perpetual Michelle Kwok*

Head of Asia Real Estate and HK Equity Research

securities should lower financing costs and signals management’s confidence in The Hongkong and Shanghai Banking Corporation Limited

medium-term cash flow resilience. michellekwok@hsbc.com.hk

+852 2996 6918

Maintain Buy with an unchanged TP of HKD23.00. Hysan trades at a 68% NAV Ganesh Siva*

discount and 6.2% 2026e dividend yield. Share price catalysts could come from Associate

Bangalore