Citigroup raises the target price for Guangdong Investment to HKD 8.8, making its dividend yield attractive as the top choice among Hong Kong utility stocks

AASTOCKS
2026.01.29 03:58

Citi published a research report reiterating a "Buy" rating on GUANGDONG INV (00270.HK) due to its earnings surprise announced yesterday (28th), expecting the company's net profit to grow by 43% year-on-year to HKD 4.493 billion, which is about 2% higher than market expectations, mainly due to interest expenses being lower than expected.

Citi stated that based on the above reasons, it has raised its net profit forecasts for GUANGDONG INV for the next two years by 2.1% to 2.6%. Based on profit growth and rolling forward valuations, the target price has been raised by 10%, from the original HKD 8 to HKD 8.8.

Citi indicated that the group forecasts a dividend payout ratio of 6.3% in 2025, which is attractive and the highest among peers, remaining Citi's top choice in Hong Kong utility stocks

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