[ET Net News Agency, 11 September 2020] J.P. Morgan said the winning of the US
Consulate Quarters tender will be a mild positive for Hang Lung Properties (00101), given
the satisfactory margins at a low-end AV (accommodation value), and a solidified for-sale
properties pipeline.
With Hang Lung winning the tender at the low end of market valuation, the research house
thinks this could reflect the conservative stance of major developers on the top-end
luxury market, particularly when the likes of Wharf (00004), SHKP (00016), Kerry (00683)
and CKA (01113) have already completed luxury projects in their launch pipelines.
That said, based on the comparable ASP nearby and better view of this site, JPM believes
a satisfactory development margin could be achieved. It maintained its "overweight" rating
on Hang Lung, with a target price of HK$20.5. (KL)