BOC International released a research report stating that it maintains the “buy” rating of Zhifu Industrial Trust (00778), with a target price of HK$5.86. The bank pointed out that during the period, the revenue of Zhifu Industries fell 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, which is roughly in line with market expectations of HK36 cents. The results for the second half of the year stabilized, with revenue/net property income falling only slightly by 0.3%/1.2% compared to the same period last year to HK$0.875 billion/ HK$0.62 billion.

Zhifu Industrial's retail business occupancy rate in Hong Kong, China increased 0.6 percentage points to 95% in 2024, 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. Financing costs decreased by about 8.5% year over year to HK$0.502 billion. By the end of 2024, the average interest cost was around 4%. According to the bank, the asset enhancement plan for Zhifu Metropolis Plaza has been postponed to reduce the impact on revenue. In addition, Chi Fu 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.