According to J.P. Morgan Chase's operating data for the first fiscal quarter ending at the end of June, showed that Hong Kong's immediate rents continued to stabilize, but merchant sales performance was slightly disappointing. According to the report, the sales volume of leading Hong Kong property merchants fell 1.1% year on year in the first quarter, falling short of the positive increase expected by the market. It also outperformed the 3.7% year-on-year increase in retail sales of essential consumer goods in Hong Kong. The quarterly decline in spot rents in Hong Kong narrowed further to 0.5%. Management expects the rent rescheduling rate for the first half of FY2027 to be negative for the number of units, an improvement from the number of negative high units in FY2026, but the guidance for the whole year remains negative for the number of high units. The bank believes that the latest data from Lingzhan was not surprising, but it is still optimistic about its prospects, mainly due to the immediate rent stabilization and rent rescheduling rate which is expected to improve in the 2028 fiscal year; investors may switch from real estate developers to leasehold shares; continued unit repurchases; and the 6.5% yield is still one of the most liquid in Hong Kong real estate stocks. The bank maintains Leading's “Overweight” rating, with a target price of HK$43.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.