Hang Lung Properties' First-Half Resilient; Fair Value Estimate of HKD 22 Reaffirmed

Despite the extensive lockdowns across its operating geographies in mainland China and Hong Kong, we see Hang Lung Properties' first-half result as resilient and reflective of the group’s high-quality property portfolio. The booking of a residential unit sale at Blue Pool Road, a completed project in Hong Kong, provided an uplift to overall revenue. However, we lower 2022 and 2023 revenue forecasts by 5% as we factor in lower rental from the malls closures in the first half, and slower office rental growth at Plaza 66. We expect a sharp rise in 2023 revenue due to the booking of Aperture, a residential project in Kowloon Bay.