Hongkong Landmark Shopping Center Deteriorated 15% In The First Half Of The Year

In the first six months of this year, the total retail sales value of Hongkong dropped by 10.5%, the biggest decline since 1999.

Such data means that Hongkong retailers and commercial real estate operators are suffering more than ever.

19 of Hongkong's major property developers, 0004.HK, today disclosed that the medium-term sales of its two flagship properties, Harbour City and Times Square, fell by 14.7% and 15.7% respectively, down by 12.1% and 12.8% over the 2015 year, and also higher than the average level of the market, mainly because of high-end.

Sales are weak.

The revenue of Harbour City shopping malls increased by 4% to HK $3 billion 108 million per year. The rental rate remained close to 100%, while tenant sales fell to HK $13 billion 300 million.

Times square revenue increased 10% to HK $1 billion 87 million, occupancy rate remained 99%, and tenant sales fell to HK $3 billion 900 million.

The nine warehouse pointed out that the sales of these two large shopping malls began to stabilize in the two quarter, and the flow of people remained stable. Harbour City had a moderate increase.

Li Yufang, vice chairman of the group, revealed in the performance press conference that over the past two months, the sales of the tenants have narrowed down, and some have even picked up.

She thinks high-end.

Sales may have hit bottom, so they are cautiously optimistic about the outlook for the second half of the year. They also say that double-digit declines in sales in the first half of the year are related to some international brands' downward pricing strategies.

The nine warehouse has a differentiated strategy for the development of tenants in Harbour City and Times Square.

Harbour City has continued to innovate the tenant portfolio by introducing more appealing and young brands, increasing the flow of people by playing the trend card.

In the first half of the year, the new tenants of the mall included luxury brands such as IRO, SamanthaThavasa, ColeHaan, WeekendMaxMara, Fossil and other beauty brands such as SkinCeuticals and Aesop, in order to grasp the new trend of sports and leisure.

The flagship store has opened.

Times Square focuses on attracting high-end retailers to expand or expand the storefront and introduce the latest trend restaurants.

The new tenants include luxury brands such as JimmyChoo, MaxMara, Celine and Dior.

In the first half of the year, Harbour City's revenue rose 4% to HK $4 billion 462 million, operating profit rose 5% to HK $3 billion 952 million, while times square revenue increased 9% to HK $1 billion 435 million, operating profit increased 11% to HK $1 billion 303 million.

The income of the investment property sector affiliated to Hongkong increased by 7% to HK $6 billion 447 million, accounting for HK $20 billion 21 million of the group's total revenue, and operating profit increased 7% to HK $5 billion 688 million, accounting for 70.4% of the group's total operating profit of HK $8 billion 75 million.

As of June 31st, the valuation of Harbour City and Times Square belonging to nine warehouse core assets was HK $163 billion 100 million and HK $54 billion 500 million respectively, and there was no significant change compared with the valuation as at December 31, 2015.

The mainland investment property is valued at HK $59 billion 300 million, mainly including the Chengdu international financial centre, the Tek Tak Fung International Plaza and the developing Changsha Golden State centre and the Suzhou international financial centre. The projects in Changsha and Suzhou are planned to be completed in 2019 and 2018 respectively.

In the first half of the year, the Chengdu state gold center, which was claimed to have become the landmark of West China since its opening in 2014, has been sold by 1 billion 800 million yuan RMB by nine yuan. Its annual sales increased by 13%, and the volume of people's traffic increased by 14%. The total revenue of shopping centres increased by 9% to 312 million yuan.

On the basis of nearly 300 top international brands, the mall introduced new brands such as VeraWang, PhilippPlein and LoveMoschino.

The 0004.HK on Wednesday closed at HK $52.20, down 1.88% from the whole world. The stock has risen 20.5% since 2016.

CreditSuisseGroupAG (VTX:CSGN) Credit Suisse said that the nine positions in the development of property, hotel, logistics, communications and media business were in line with the expected results, but the dividend yield of HK $0.58 per share was worse than its expected HK $0.60, so the rating of the "big market" of the stock was HK $42.

Lyon believes that the retail market in Hongkong is difficult to turn around in the near future, and Harbour City will face direct competition with the new world center approaching the completion of the new lease. Therefore, the rating of 0004.HK will be reduced from "losing market" to "selling", with a target price of HK $44.4.