Glonghui, March 21 | Goldman Sachs published a research report saying that Changjiang Infrastructure's performance last year was in line with expectations. Net profit increased 4% to HK$8 billion year-on-year. Excluding exchange earnings and one-time income recorded from the sale of some of Northumbrian Water's equity in 2022, core net profit increased 7% to 7.6 billion yuan year-on-year, which is also in line with the bank's and market expectations. Goldman Sachs pointed out that as in previous years, the Group adopted a dividend policy of steady growth and announced a final dividend of HK$1.85 and a total annual dividend of HK$2.56, an increase of 1% year-on-year. The dividend ratio was 80%, a decrease of 2 percentage points from year to year. Taking into account performance and the latest exchange rate expectations, the bank lowered its earnings forecast per share from 2024 to 2026 by up to 4%, and raised the target price from HK$50 to HK$52, pointing out that after long-term construction experienced regulatory adjustments in the UK and Australia in the past few years, although profit levels declined, working capital increased to 8.6 billion yuan during the period, which is believed to be sufficient buffer for the progressive dividend payment policy. Goldman Sachs still hopes that interest rate trends and potential mergers and acquisitions will bring long-term construction re-rating opportunities and maintain its “neutral” rating.