UBS raised the rating of Hang Lung Group (0010.HK) from neutral to buy, and raised the target price from HK$39.20 to HK$51.50; the new target price is equivalent to a 25% discount on the net assets forecast of HK$68.40 per share (HK$48.96 before the increase) for the 2011 fiscal year after the increase. Previously, it raised the net asset forecast for subsidiary Hang Lung Properties (0101.HK).

UBS believes that the share price of Hang Lung Group Holding Company is expected to be relatively small compared to net assets per share because the Hong Kong real estate upward cycle is expected to continue until 2011-12, while consumption in the mainland increases.

Hang Lung Group fell 0.44% to close at HK$44.95 on Thursday.