Xiaomo: Upgrading the rating of Jiulongcang Real Estate (01997) to “increase holdings”, the target price was raised sharply to HK$35.7, and the management's optimistic outlook brought surprise

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that the management of Jiulongchang Real Estate (01997), which is often regarded as “cautious for many years” by the market, turned “optimistic”, bringing a surprise to the market. This is the first time in many years that the company has shown a high level of confidence, believing that the most difficult period has passed. At the same time, the company unexpectedly revised its dividend policy and raised the dividend payout ratio from 65% to 90%. The bank raised nine ratings from “neutral” to “overweight”, and the target price was raised sharply from HK$23 to HK$35.7.

Komo pointed out that although the base for the second half of this year is high, it is expected that Seaport City's tenant sales will maintain positive year-on-year growth and outperform the market. It is also expected that the rent renewal adjustment ratio for the 2027 fiscal year may be corrected. As Times Square's drag on performance lessens, the company's profit is expected to grow at a compound annual rate of 4% for the 2025-28 fiscal year.