UBS published a report that said that Linkreit (00823) held a pre-silence period call for the first half of fiscal 2025, and management said that the tenant sales in Hong Kong in the first quarter were weak, but there were signs of stabilization in the second quarter of fiscal 2025. The brokerage expects the stock price to react to the content of the meeting in a neutral way, and its target price is raised from HK$35.6 to HK$38, with a "neutral" rating.Management emphasized that the Hong Kong retail sales faced adversity in the structural adjustment, and its Hong Kong tenant sales in the first quarter of fiscal 2025 fell 5.9% year-on-year, weaker than the 0.4% growth in fiscal 2024, but management believed that there were signs of stabilization in the second quarter of fiscal 2025, as the tenant sales fell year-on-year to 4-5% so far this year. The latest rent-to-sales ratio rose 0.8 percentage points from 12.6% in fiscal 2024 to 13.4%.The brokerage said that Linkreit still managed to achieve a slight rebound in the rent adjustment rate in the first and second quarters of fiscal 2025, but it is expected to further slow down in the second half of fiscal 2025. Management expects the rent adjustment rate in the next 3-6 months to not rebound significantly.