HSBC's research report indicates that Henderson Land Development (00014.HK) outperformed expectations in the first half of the year, with a slight 0.7% decrease in net profit; retail rental income increased by 11% year-on-year, which surprised and exceeded the bank's expectations. However, due to the capital expenditure of the Mount Nicholson project (Lee Gardens 8 Phase), the bank expects its asset-liability ratio to trend upward in the next two years and only ease in 2027. In addition, the Hong Kong office market's weakness may offset the positive impact of the improvement in retail business or slow down its profit recovery pace.

HSBC Research stated that if Henderson raises its dividends or the pre-leasing progress of Lee Gardens Phase 8 is good, the market's outlook for the group will be more optimistic. The bank raised the group's earnings forecast from 2.9% to 5.2%, maintained its 'hold' rating, and raised the target price from 11 yuan to 11.8 yuan.