Goldman: Maintains Sun Art Retail target price at HK$45.3 and "Buy" rating
1min read Goldman issued a report that maintains its target price of HK$45.3 for Sun Art Retail Properties (00823) and maintains its "buy" rating.Goldman said that Sun Art Retail Properties had no big surprises in its investor conference call after the market closed on October 3. As Hong Kong residents travel north and overseas, its rental reversion was positive and its mall tenant sales in the first quarter of fiscal 2025 fell 5.9% further, but positively, the sales trend improved in summer and the decline is expected to narrow in the second quarter.Sun Art Retail Properties expects a strong momentum in the July-September quarter this year, benefiting from a low single-digit positive recovery in rental reversion, which is expected to continue in the rest of the fiscal year. The occupancy rate will decline slightly from 98% at the end of fiscal 2024 to 97.5% in the first quarter of fiscal 2025, but it is temporary and has already rebounded to about 98%.Sun Art Retail Properties' performance in the mainland has been very strong, and the demand for its overseas malls remains strong.
