CLSA's latest research report indicates that HYSAN DEV (00014) delivered stable performance in the first half of 2026, with resilient recurring profitability, unchanged dividend per share, and continued retail outperformance versus peers.

Supported by improving retail sentiment, luxury tenant upgrades, and rising foot traffic, the Lee Gardens area has continued to outperform the broader Hong Kong retail market, benefiting from a luxury-driven demand recovery. Tenant sales have now returned to pre-pandemic levels, providing support for positive rental renewal adjustments.

Capital recycling progress aids deleveraging and alleviates capital expenditure pressure. The brokerage has lowered its earnings forecasts for HYSAN DEV for the 2026 to 2028 fiscal years by 3% to 14%.

To reflect an expanded net asset value discount under a more restrictive US interest rate environment, the target price has been reduced from HK$25 to HK$20, with the "Outperform" rating maintained.