According to the Citi report, maintaining Langting's (01270.HK) “neutral” rating, the target price was lowered by 3.1 yuan from 3.48 yuan.

Langtin's mid-term distribution of 0.117 yuan per unit disappointed the market, falling 19.9% year-on-year, meaning the annual return was about 7.1%. The hotel business weakened due to a decline in overnight visitors to Hong Kong and competition for customers due to price cuts from competitors. Capital expenditure in the first half of the year was 85 million yuan, raising the net debt ratio to 38.7% from 38.4% last year.

Average room revenue in the first half of the year fell 15% year-on-year. Management indicated that competition in the industry was fierce, and the decline in average room revenue in July widened further. It is difficult to reverse the downward trend in Citi's expected earnings, as neighboring regions such as South Korea strengthened promotion of tourism, and the strengthening of the Hong Kong dollar are detrimental to Hong Kong's tourism industry.