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GUANGDONG INV (00270.HK) Slumps Over 6%; Citi Says Results Meet Expectations, 5.7% Dividend Yield Highest Among HK Utilities
2026-10-28 12:48:31 GUANGDONG INV (00270.HK) opened 0.4% lower today (28th), hitting a trough of HKD8.045. It closed at HKD8.095 by midday, down 6.63%, with trading volume of 13.61 million shares and turnover of HKD112 million. Citi issued a research report saying that GUANGDONG INV's 3Q26 results were broadly in line with the broker's and market expectations. Net profit for the first nine months rose 7.3% YoY to HKD4.362 billion, of which 3Q net profit increased 3% YoY to HKD1.426 billion. Earnings growth in the third quarter was mainly driven by higher profit from the mainland China water business. The broker noted that pre-tax profit for the first nine months increased 7.1% YoY to HKD6.683 billion, with the water business accounting for 83.2%. Pre-tax profit from the water business rose 3.9% YoY to HKD5.4 billion. Pre-tax profit from the Dongshen Water Supply Project grew 1.3% YoY to HKD3.641 billion, while pre-tax profit from the Hong Kong-based water group engaged in mainland water supply rose 9.9% YoY to HKD1.759 billion. Pre-tax profit from property investment, department store and hotel businesses rose 3.1% YoY to HKD928 million in the first nine months, contributing 14.3% of the total. Pre-tax profit from the hotel business increased 26.7% YoY to HKD87 million, while profit attributable from power plants fell 30.8% YoY to HKD123 million due to rising coal costs. Citi maintained its Buy rating and TP at HKD9.5, saying the expected 2026 dividend yield of 5.7% is attractive and the highest among Hong Kong-listed utilities. The company pledged not to reduce DPS before 2030 and to maintain a payout ratio at 65%, supporting dividend sustainability. Based on the closing price of HKD8.67 on Oct 27, the expected share price return is 9.6%, and total return is forecast at 15.2% including dividends. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese 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. | |