Despite the decline in Hong Kong's retail sales and record-high vacancy rates, UOB Kay Hian still saw a slight signs of improvement, including a slight increase in spending by overnight visitors and revenue in the catering industry in 1Q25, according to UOB Kay Hian's research report.

Among the homebuilders operating retail leasing, WHARF REIC (01997.HK)  -0.250 (-1.111%)    Short selling $5.68M; Ratio 15.998%   is expected to benefit the most due to its highest proportion of floating rate debt. It is estimated that the average HIBOR will drop by 100-200 bps this year, and WHARF REIC's underlying profit will rise by 3.9-7.7%.

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In terms of stocks, UOB Kay Hian's top pick is WHARF REIC due to its highest proportion of floating rate debt and its holding of high-end assets in core areas. Therefore, the broker elevated its target price by 10.7% to $26.5, reflecting a projected annual dividend yield of 4.8%.

UOB Kay Hian also lifted its target price for LINK REIT (00823.HK)  -0.150 (-0.353%)    Short selling $11.63M; Ratio 6.791%   by 8% to $48.48, with a forecasted FY2026 yield of 5.5%. The broker raised its target price for HYSAN DEV (00014.HK)  0.000 (0.000%)    Short selling $285.24K; Ratio 3.157%   by 9% to $15.43, reflecting an annual dividend yield target of 7%. All the above stocks are rated at Buy.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-27 12:25.)