HONG KONG: The two flagship malls of Wharf Holdings Harbour City and Times Square saw sales dive 16.7 percent and 12 percent respectively in March.
The figures, quoted in a report by Credit Suisse, are much higher than local retail sales, which were down 2.9 percent in the same month. The slump was due to depreciating foreign currencies, the report quoted Wharf’s management as saying. Strong sales of smartphones, up 88 percent in March from a year ago, did not benefit Wharf’s malls as cellphone vendors are not key tenants, it said.
Sales at Harbour City in Tsim Sha Tsui reached HK$35 billion last year, up 3.4 percent from 2013, representing more than 7 percent of Hong Kong’s overall retail sales.
But HSBC Securities forecast a 10 percent sales slump at malls owned by Wharf, giving the firm a “hold” rating.
Shares of Wharf fell 2.32 percent to HK$56.85 yesterday. But Credit Suisse raised the target price to HK$62, noting that the recovery of the mainland property market may help earnings.
Sales at Wharf’s three key malls, including the above two and Plaza Hollywood, fell 6 percent in January, and rose 3 percent in February. IMOGENE WONG
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