0733 GMT - Guangdong Investment's decision to distribute shares of Guangdong Land as a special dividend to shareholders will improve earnings visibility and gearing levels while removing business risk, Citi analysts Pierre Lau and Air Ma say in a research note. The move by GDI, whose share price was recently down about 68% from early 2020 partly due to concerns about property development amid an industry downturn in China, eliminates exposure to a loss-making entity and a troubled sector, they write. They also like GDI's estimated 2025 yield of 7.6%, which they call the highest among Hong Kong utilities. They upgrade the stock to buy from neutral and raise their target price 25% to HK$6.00. Shares are up 7.7% to HK$5.62, nearly erasing year-to-date losses. (ben.otto@wsj.com; @benottoWSJ)
(END) Dow Jones Newswires
December 10, 2024 02:33 ET (07:33 GMT)
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