BOC International believes that Lingzhan's performance in the first three quarters of the 2024 fiscal year has remained generally stable, and rents are expected to record a moderate increase to offset the impact of rising interest rates.
The Zhitong Finance App learned that BOC International released a research report stating that it maintains the “buy” rating of Lingzhan Real Estate Fund (00823), with a target price of HK$48.7. Although overall dividends for the fiscal year ending at the end of March 2024 will still decline due to the dilution of last year's share supply, the bank believes that Linzhan's performance in the first three quarters of fiscal year 2024 has remained generally stable, and rents are expected to record moderate increases to offset the impact of rising interest rates. Meanwhile, the stock currently predicts a dividend rate of 7.7%, which is about 350 points higher than the 10-year US Treasury interest rate. I believe the stock price fully reflects concerns about retail and interest rate uncertainty.