"Big Banks" JP Morgan: Hang Lung has newly obtained a long-term operating lease, maintaining its position among preferred stocks with a target price of HKD 10

JP Morgan's research report indicates that HANG LUNG PPT (00101.HK) recently announced the successful acquisition of long-term operating leases for the expansion projects at 1038 Nanjing West Road in Shanghai and Wuxi HANG LUNG Plaza. Management stated that the projected internal rate of return (IRR) for each new light-asset project reaches double-digit percentages, with a payback period within ten years. The three recently added light-asset leases collectively add 185,000 square meters to the group's property portfolio.

The bank stated that HANG LUNG PPT remains one of its preferred stocks, as tenant sales in mainland China continue to improve, and it expects light-asset operating leases to start contributing in the 2028/29 fiscal year, bringing new growth momentum. Additionally, the stock is attractively valued, with a dividend yield of 5.8% and high dividend certainty. The bank now sets a target price of HKD 10 and a "Buy" rating