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<Research>Citi Raises CTF SERVICES (00659.HK) TP to HKD10.9 on Changsha-Liuyang Expressway Stake Sale to Unlock Value
Recommend 9 Positive 8 Negative 5 |
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CTF SERVICES (00659.HK) announced the sale of its 100% equity interest in the operating company of the Changsha-Liuyang Expressway to two companies affiliated with the Shanghai State-owned Assets Supervision and Administration Commission for a consideration of approximately RMB1.61 billion, Citi mentioned in its report. Citi believed that the combined value of the consideration and removal of borrowing is about 105% higher than the target company’s GAV in the broker's calculation. The broker noted that the asset disposal reflects management's proactive capital recycling strategy and will help further narrow the company's current NAV discount (currently about 36%). Although Citi expected its FY2026 earnings forecast to be lowered by 3% due to the disposal loss, it believed the financing cost savings from the sale will offset most of the operating profit loss from FY2027 onwards. Citi raised its TP for CTF SERVICES from HKD10.6 to HKD10.9 and maintained a Buy rating. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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