[ET Net News Agency, 13 January 2020] UBS Global Research lifted its target price for
Longfor Group Holdings (00960) to HK$41.8 from HK$33.4 and upgraded its rating to "buy"
from "neutral".
The research house turned more positive on Longfor's shopping mall business, as it
builds a recurring income base. It also helps the company acquire land as local
governments welcome malls that generate recurring GDP, tax income, employment and improve
a city's image.
UBS believes shopping malls have high entry barriers as their development requires a
strong balance sheet with low funding costs, and a strong management team, and, most
importantly, building a reputation in the retailer space takes time. (KL)