UBS published a report stating that the performance of Hang Lung Group (00010-HK) is in line with expectations, but in terms of valuation, it is not as good as directly holding Hang Lung Properties (00101-HK). Maintaining Hang Lung Group's “selling” rating, the target price was fine-tuned from 47.2 yuan to 46.5 yuan; the target price for Hang Lung Real Estate's “buy” rating was fine-tuned from 31.2 yuan to 31.3 yuan. Hang Lung Properties' core profit for the first half of the year rose 57% year-on-year to $2.3 billion, 7% higher than the bank's forecast, mainly because the profit from the mainland leasing business beat expectations. The bank expects that the profit growth of the mainland business will depend on the contribution of new projects and a gradual increase in the rent and profit margins of existing shopping malls. On the Hong Kong side, management has a speculative attitude towards future land purchases, targeting prime locations that attract low costs; at the same time, the company will continue to sell non-core assets and residential units. UBS believes that it is relatively cheaper to directly own Hang Lung Real Estate without going through Hang Lung Real Estate. Currently, Hang Lung Group's stock price is only 4% off net asset value, while Hang Lung Real Estate's discount margin is 15%. It is believed that the profit from mainland leasing and the sale of Hong Kong's non-core assets will help reduce the latter discount margin.