Original title: Credit Suisse indicates that the basic factors of Jiulong Warehouse Real Estate (01997-HK) showed no signs of improvement, cut the target price 33% to HK$27.5 Source: Caihua.com

[Caihua News] Credit Suisse indicates that the epidemic has rebounded, and there is no sign of improvement in the basic factors of Kowloon Warehouse Real Estate (01997-HK). Credit Suisse lowered its profit forecast for the next three years by 14% to 17%, cut its target price by 33% to HK$27.5, and maintained a neutral rating.

Kowloon Warehouse Properties recently announced interim results. For the half year ended June 30, 2020, the Group's revenue was approximately HK$6.775 billion, a year-on-year decrease of 20.28%; losses attributable to shareholders amounted to HK$4.454 billion, with a profit of HK$6.999 billion for the same period last year; basic loss of HK$1.47 per share; and proposed payment of an interim dividend of HK$0.78 per share.

During the period, the Group's underlying net profit declined 26% to HK$3,844 million, investment properties fell 23% to HK$3,853 billion, while hotels switched from profit to loss. Revenue from investment properties fell 18% to HK$6.089 billion, and operating profit fell 21% to HK$5.211 billion, mainly due to the sharp drop in turnover component rents and the provision of significant basic rent concessions to retail tenants under the current unfavorable circumstances.

The company's stock price is now at HK$28.1, up 0.36%, with a trading volume of 36,000 and a turnover of HK$1,011,600.