The Zhitong Finance App learned that Daiwa released a research report saying that maintaining the China Merchants Port (00144) “buy” rating, the company still faces macro uncertainties, but port rates are still growing slowly. It believes that its high unit dividend yield is sustainable, and the target price was lowered from HK$17.5 to HK$16.

The bank said that given the international platform of the parent company China Merchants Port A (001872.SZ) and the group's own factors, it is expected that it will sell joint ventures and joint venture ports in the future. The Group is actively seeking international M&A opportunities in Southeast Asia and Africa. Furthermore, with healthy cash flow, the Group has promised a dividend distribution ratio of no less than 40%. The bank lowered the Group's earnings per share measurement for the 2023-24 fiscal year by 21% to 24% because 2022 performance fell short of expectations and the latest throughput and port rate growth assumptions. Despite earnings adjustments and recent stock price weakness, the bank believes China Merchants Port still offers an attractive high per-unit dividend rate based on its healthy cash flow.