Jinwu Financial News | According to BOC International Development Research Report, the revenue of Chi Fu Industrial Trust (00778) fell slightly by 2.2% year on year to HK$1.746 billion, net property revenue fell 3.6% to HK$1.253 billion, and dividend per unit fell 11.9% year on year to HK35.59 cents in 2024, roughly in line with market expectations of HK36 cents. Results for the second half of the year stabilized, with revenue/net property revenue for the second half of 2024 falling only slightly by 0.3%/1.2% year over year to HK$0.875 billion/ HK$0.62 billion.

In 2024, the retail business occupancy rate in Hong Kong, China increased 0.6 percentage points to 95.0%, and 12 of the 17 shopping malls had occupancy rates above 96%. With the completion of the +WOO asset upgrade project, Zhifu expects the overall rental rate to rise further in 2025. The year-on-year decline in financing costs was approximately 8.5% to HK$0.502 billion. By the end of 2024, the average interest cost was around 4.0%.

According to the bank, the asset enhancement plan for Zhifu Metropolis Plaza has been postponed to reduce the impact on revenue. In addition, Zhifu launched two short-term asset enhancement projects at the same time, including Laguna Mall and Huadu Avenue, with an estimated total capital expenditure of approximately HK$41 million.

Based on the annual dividend, the yield was 8.4% based on the closing price of HK$4.25 on March 4. The bank maintained its buy rating and maintained its target price at HK$5.86. Hong Kong Real Estate Trust may enter the Hong Kong Stock Connect list this year and will be the main catalyst for the company's stock price.