Citi released a research report stating that due to Guangdong Inv (00270) declaring a special dividend of 1.262 billion shares of gd land (00124), the bank has upgraded Guangdong Inv's rating from "neutral" to "buy" and raised the target price by 25%, from 4.8 HKD to 6 HKD.
The bank expressed a bullish outlook on this move, believing that the trade will improve the profitability visibility of Guangdong inv, and the group's financial condition will also improve due to a reduced debt-to-asset ratio. Meanwhile, Citibank believes that Guangdong inv's yield for 2025 is 7.6%, the highest among Hong Kong utilities industry, making it very attractive.
