GLONGHY, August 11 | UBS published a research report stating that Hysan's interim results fell short of expectations and maintained an initial interim dividend of 27 cents per share, in line with expectations, meaning that the dividend rate increased further by 4 percentage points to 34%. On the positive side, the company was able to control financing costs. Financial expenses increased 34% to 231 million yuan, the company's effective financing costs reached 3.9%, up from 2.8% in 2022, while the fixed interest rate debt ratio reached 76%, and less than 5% of the total loan matured within the next 18 months. The bank believes that Hysan's retail rental income improved in the second half of the year, and that the Asset Enhancement Project (AEI) will be completed in the first half of next year, so it believes the company can maintain a stable dividend policy. Given the company's dividend rate of 8.2% in 2023, the bank believes that the company's stock price has downward support. Furthermore, the bank lowered Hysan's profit forecast for 2023 to 2025 by 6% to 13%, and the target price from HK$28.7 to HK$26.3 to reflect expectations of the company's weak gross profit recovery, loss of retail space due to asset enhancement projects, and rating it “buy”.