DBS believes that the refurbishment of the Lee Gardens business district will bring long-term value growth.
The Zhitong Finance App learned that DBS released a research report saying that maintaining the Hysan Development (00014) “buy” rating, the target price was lowered from HK$17.7 to HK$17.16. As the owner of the largest commercial project in Causeway Bay, Hysan Place is a popular shopping destination for locals and visitors. The Lee Gardens business district houses a group of high-end brand businesses, close to the MTR station, and has synergetic benefits between properties.
According to the report, the renovation of the company's retail portfolio is nearing completion, and high-end brand flagship stores will open one after another this year and next. It is expected that rents will increase by mid-ten digits, which is expected to drive Hysan's profit recovery and offset the negative impact of the reduction in office rent renewals. It is believed that the renovation of the Lee Gardens business district will bring about long-term value growth.