Guotai Junan International: Raised target price of Rich Industry Trust (00778.HK) to HKD 5.92, expected stable portfolio and interest rate cuts, help improve valuation.

According to the financial news app, Wisdom Financial APP, CICC International released a research report stating that, due to the need for further consolidation of the retail market in Hong Kong, it slightly lowered its income and distribution forecasts for Prosperity REIT (00778.HK) in 2025 and 2026. However, they believe that improvements in the stock market and real estate performance may bring wealth effects, which will help stabilize the market in the medium to long term. It is predicted that distributions in 2026 and 2027 may increase by approximately 2% to 3% annually. The potential inclusion of the Shanghai-Hong Kong Stock Connect will be a key catalyst in the next 12 months, and the impact of interest rate cuts is expected to be greater than the expectations of rent adjustments. Due to the lowering of interest rates and discount rates, CICC International has slightly raised its target price to 5.92 Hong Kong dollars and maintains a "buy" rating.