According to "The Big Banks," CMB International raised the target price for FORTUNE REIT to HKD 5.92, expecting the portfolio to remain stable, and interest rate cuts to help enhance valuation

The research report from China Merchants Jinling International indicates that due to the need for time to consolidate in the retail market of Hong Kong, it has slightly lowered the revenue and distribution forecasts for FORTUNE REIT (00778.HK) for 2025 and 2026. However, it believes that improvements in the stock market and real estate performance may bring about a wealth effect, which will help stabilize the market in the medium to long term, predicting that distributions in 2026 and 2027 could grow by approximately 2% to 3% year-on-year.

China Merchants Jinling International stated that FORTUNE REIT's retail portfolio, primarily focused on essential consumption, remains resilient and is expected to maintain a high occupancy rate. Recent fluctuations in HIBOR have led to a decline in stock prices, but it believes that a potential interest rate cut by the Federal Reserve in September or by the end of the year will help the company's stock price rebound.

At the same time, the bank believes that the potential inclusion in the Shanghai-Hong Kong Stock Connect will be a key catalyst in the next 12 months, and the impact of interest rate cuts should outweigh the expected changes in rental adjustments. Given the reduction in interest rates and discount rates, China Merchants Jinling International has slightly raised its target price from HKD 5.86 to HKD 5.92, maintaining a "Buy" rating