The Zhitong Finance App learned that Lyon released a research report saying that the valuation benchmark created by Chow Tai Fook (00659) was rolled to the 2028 fiscal year, and that the number of shares increased by 10% by including a free ten bonus stock. The target price was lowered from HK$11.5 to HK$11.2, maintaining the “outperforming the market” rating. After adjusting for bonus shares, the company's dividend rate for the 2027 fiscal year is about 6.9%. The current price is about 32% off from the 2027 net asset value of 11.9 yuan per share.
Taking into account the impact of the sale of the three highways, the bank lowered the company's recurring profit forecasts for the 2027 and 2028 fiscal years by 5% and 12%, respectively, to $2,861 billion and $2,847 billion, respectively. The negative impact of the freeway sale on profits was partially offset by additional interest income at headquarters level. The bank also adjusted the profit margin assumptions for the Logistics and Facility Management division to take into account losses of approximately RMB 170 million from the sale of the three motorways and an annual depreciation of RMB 300 million from fiscal year 2027 to fiscal year 2029.
Lyon pointed out that there is currently a neutral view on the company's new investment in projects such as data centers and energy storage, but it is expected that it will contribute positive profits after production is put into operation. Despite several recent deals, the bank believes that the investment argument is still complete. The controlling Zheng family bought shares on the open market at the end of September. This is the first time since December 2006. It continues to show that regular dividends have an upward risk.