The Zhitong Finance App learned that Bank of America Securities released a research report stating that it reaffirmed the ESR (01821) “buy” rating, but as costs increased, the profit forecast per share for 2024 to 2025 was lowered by more than 6%, and the target price was lowered from HK$17.5 to HK$16.1. The company's management remains confident that the scale of asset management related to management fees has reached a high number of units throughout the year and will continue to streamline non-core business.

According to the report, the company's performance for the first half of the year was in line with expectations. The adjusted profit after tax and non-controlling interests (PATMI) fell 26% year on year to 304 million US dollars, of which fund management EBITDA was about 329 million US dollars, up 14.2% year on year, EBITDA profit margin rose to a new high of 82%, and the scale of asset management related to management fees increased 10% year on year to 78 billion US dollars. However, interest costs increased by 60% year on year, and exchange losses continued to drag down profits. It is estimated that the trend will continue in the second half of the year. The rental rate in the Mainland is weak, at only 84%, and management estimates it will take at least 6 to 12 months to improve.