Haitong was first given a buy rating by 0369.HK, with a target price of HK $3.80, based on a 20 per cent discount to its expected net asset value at the end of fiscal 2011. According to Haitong, USI's recurrent income comes mainly from investment properties in Hong Kong, including 1.5 million square feet of A-class office buildings and 1.3 million square feet of industrial buildings, which are mainly held through its 63 per cent listed company, Winsor property Holdings (1036.HK).

Haitong added that the occupancy rate of USI's A-level Landmark East office space in East Kowloon has risen sharply from 50 per cent at the beginning of fiscal year 2010 to about 90 per cent today. The bank said that the limited supply of office space in East Kowloon, coupled with the continued redevelopment of nearby and surrounding properties, is expected to further increase the occupancy rate of Landmark East.

USI rose 0.62 per cent to HK $3.27 yesterday.