WiseNews Financial News app learned that Fubon released a research report stating that Hang Lung PPT (00101) maintains a 'buy' rating with a target price of HK$8. The company's management believes that luxury goods are still a focus and a guarantee of maintaining their leading position.

The bank pointed out that Hang Lung PPT's sales trend in the third quarter of this year is still challenging, with a year-on-year decrease of 15% in total tenant sales in the first 9 months, higher than the 13% in the first half of 2024, while luxury goods remained stable. The soft retail sales from the beginning of the year to now are mainly due to a double-digit decrease in average spending, partially offset by the double-digit growth in member base and single-digit growth in frequency of visits.

However, there were some early signs of improvement during the National Day holiday. The management stated that luxury goods, except in Shanghai, recorded 'strong growth', while Shanghai lagged behind due to factors like outbound tourism, but the management believes the situation will improve later. The Plaza 66 mall under the group is currently experiencing a decline in tenant retail sales, but its expansion will solidify the group's leading position in the luxury goods market in Shanghai, with management expecting returns to materialize 'many years later'. The Harbour City Hang Lung Square will also face even more severe challenges in the future.