Lyon: It was surprising that the first-half performance of Wharf Land (01997) was better than expected, and the dividend ratio was raised sharply to 90%

The Zhitong Finance App learned that Lyon released a research report saying that maintaining the “outperforming the market” rating of Jiulongchang Real Estate (01997) and the target price of HK$40, the target price is 38% off the 2026 net asset value of HK$64.60, and the discount margin is one standard deviation narrower than the five-year average.

Lyon pointed out that the performance of Wharf Land for the first half of 2026 was better than expected. The dividend ratio was raised sharply from 65% to 90%, and the mid-term dividend per share rose 42% year-on-year to HK$0.94, reflecting that after selling Wheelock Place in Singapore, the management turned undistributable profits into distributable cash flow in an effort to enhance shareholder returns.

Lyon said that since March 2026, Wharf Real Estate has been ranked by the bank as the bank's first choice for the Hong Kong real estate sector. With significant exposure to the recovery cycle of luxury property sales in Hong Kong and a number of recent actions beneficial to minority shareholders, it has helped narrow net asset value discounts and promote revaluation.