Jinwu Financial News | The stock price of Guanjun Industrial Trust (02778) continued to be under pressure. As of press release, it was HK$1.71, down 3.39%, with a turnover of HK$2.297 million.
According to the HSBC Global Research and Development Report, the negative factors of Guanjun Industrial Trust (02778) have been reflected in the stock price. The distribution per unit in 2023 has declined for the fourth year in a row, confirming the bank's concern about the prospects for office leasing. The visibility of future reversals is still low, and it is believed that the short-term overvaluation catalyst has stopped. The bank lowered the target price from HK$2 to HK$1.9. After reducing the target price, there was room for 7% increase compared to the market price, so the company's rating was raised from “reduced holdings” to “held”.
Damo believes that since Guanjun's interest expenses of Guanjun Industrial Trust have not peaked, the company's debt due this year reached 5.2 billion yuan. Damo said there was a structural decline in its allocations per unit. The bank lowered its forecast of allocations per fund unit by 13% and 19% for the current year and next two years, and expects the distribution per fund unit to drop 7% year-on-year this year. This is the fifth consecutive year of decline, mainly due to weak office prospects and rising interest expenses. The target price for Guanjun was lowered from HK$2.4 to HK$1.8, maintaining a “reduced holdings” rating.