Hysan Development Co. Ltd. (00014.HK) expects another lackluster year in the retail sector amid a stronger US dollar and a slowing Chinese economy.
The gloomy economic outlook will impact the property market, domestic consumption and tourist spending, the Hong Kong Economic Journal reports, citing Hysan chief executive Lau Siu-chuen.
Rental increases for lease renewals are likely to fall to 5-10 percent this year, he said.
That compares with a 25 percent rise in 2015.
Hysan said its net profit plunged 40.8 percent to HK$2.9 billion (US$373.4 million) last year.
Morgan Stanley rated the company “underweight” given sales growth below the market average.
– Contact us at [email protected]