Jingu Finance News | Guotai Junan issued a research report, stating that Guangdong Investment (00270) performance in the first half of the year met expectations. The company achieved a revenue of 12.291 billion Hong Kong dollars in 2024H1, an 8% year-on-year increase; attributable net income of 2.411 billion Hong Kong dollars, a 5% year-on-year decrease; stable growth in the company's water resources and power generation business offset the profit decline in property investment and development business, as well as the 2.2% year-on-year decline in the RMB against the Hong Kong dollar exchange rate.
The bank pointed out that the company's operations are stable, with steady growth in water resources operation business, sufficient cash flow, and a cash inflow from operating activities of 4.876 billion Hong Kong dollars in 2024H1, with capital expenditure of 0.445 billion Hong Kong dollars. The company plans to pay an interim dividend of 23.97 Hong Kong cents, with a cash dividend rate of 65%, maintaining a high dividend ratio. As of the end of the first half of 2024, GD Land did not make any provisions for the impairment of held-for-sale properties under development.
Based on financial report data, the bank has revised down the company's forecasted net income for 2024-2025, and added a forecast for 2026 to 36.9 billion Hong Kong dollars (previously 45.5 billion), 41.4 billion Hong Kong dollars (previously 49.1 billion), 4.45 billion Hong Kong dollars, with corresponding EPS of 0.56, 0.63, 0.68 Hong Kong dollars, maintaining a "shareholding" rating.