CITIC Lyon expects that the organic growth of Lingzhan Real Estate Fund (00923) over the next few years will remain low in single digits, with stable dividends, similar to bonds.
The Zhitong Finance app learned that CITIC Lyon released a research report stating that it maintained the “outperform the market” rating of Lingzhan Real Estate Fund (00923), and the target price was lowered 17% from HK$50.6 to HK$42.
The bank pointed out that the company's interim results up to the end of September 2023 were in line with expectations, but due to dilution after stock issuance, the distribution per unit decreased by 16.4% year-on-year. The economy of the Mainland and Hong Kong is slowing, and it is expected that the organic growth of Lingzhan in the next few years will remain low in single digits, with stable dividends, similar to bonds.
According to the report, although Lingzhan Real Estate Fund management's suggestion that the resumption of repurchases may improve market sentiment in the short term, the bank believes that its unit price will be more related to US Treasury yields.