BOCOM INTL: LINK REIT (00823) share price retracement provides buying opportunity Target price of 47.7 Hong Kong dollars

BOCOM INTL released a research report stating that the dividend yield of LINK REIT (00823) for 2025 is currently at 8%, which is about 360 basis points higher than the yield of US 10-year Treasury bonds. The report believes that the stock price has fully reflected the uncertainty of the retail and interest rate environment. The bank maintains a target price of HK$47.7 and a "buy" rating, indicating that the stock price pullback provides a buying opportunity. The bank has updated its financial models and forecasts to reflect the group's operating updates for the first 9 months ending in March 2025. The report indicates that as of December 2024, the rental rate of retail properties in Hong Kong remained at a high level of 97.1%. From April to December 2024, the renewal rental growth recorded a low single-digit decline, with a rent-to-sales ratio of about 13.1%, which is lower than the period from April to September 2024. The company stated that this may indicate that the impact of mainland consumer spending on the retail market is beginning to stabilize.