GUANGDONG INV rose 4.2% in half a day, with Citigroup raising the target price to 9 yuan

AASTOCKS
2026.04.01 04:19

Guangdong Investment (00270.HK) opened up 1.02% today, reaching a high of HKD 8.27. It closed at HKD 8.15 at noon, up 4.22%, with a trading volume of 19.2254 million shares, involving HKD 155 million.

Guangdong Investment reported a revenue of HKD 18.825 billion last year, an increase of 1.7% year-on-year. It recorded a net profit of HKD 4.656 billion, a growth of 48.2%, with earnings per share of HKD 0.7122. The final dividend is HKD 0.1963, compared to HKD 0.0727 in the same period last year. Including the interim dividend, the total dividend for the year is HKD 0.4629.

Citigroup published a research report, raising its earnings forecast for Guangdong Investment, increasing its net profit estimates for 2026 and 2027 by 5.1% and 8.2% respectively, to reflect the 2025 performance and incorporate new water projects in mainland China. The bank expects the group's profits to achieve single-digit growth in the coming years and does not anticipate a reduction in dividends per share before 2030, maintaining a payout ratio of 65%.

Citigroup pointed out that Guangdong Investment's net profit is expected to grow by 48.2% year-on-year to HKD 4.656 billion in 2025, mainly benefiting from the sale of Guangdong Land (00124.HK) in January 2025, which will no longer record related losses, and repaying HKD 2.25 billion in debt, reducing financial costs by HKD 282 million. During the period, the dividend per share increased by 48.2% to HKD 0.4629. The group's debt-to-asset ratio from continuing operations decreased by 10.7 percentage points year-on-year to 19.7%. The bank believes that the group's financial condition is sound and has the capability to renew the Dongjiang water supply franchise expiring in 2030.

The bank raised the target price for Guangdong Investment from HKD 8.8 to HKD 9, maintaining a "Buy" rating, and considers it a top choice among Hong Kong utility stocks, as its forecast dividend yield for 2026 reaches 6.1%, the highest among peers

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