The Zhitong Finance App learned that Citibank released a research report stating that the target price was reduced by HK$17.7 from HK$17.8 to HK$17.7 for the “sale” rating for Henderson Land (00012). The bank believes that Hengdi has successfully seized the opportunity of the recent surge in residential demand and achieved rapid sales. It is also believed that flat company dividends will generate more negative cash flow.

The bank said it appreciates Henderson Land's stable dividend per share with strong support from controlling shareholders (shareholders' loans increased to 62.4 billion yuan). Furthermore, in addition to the estimated annual capital expenditure of 7 billion to 8 billion yuan, Hengdi still needs to pay 8.7 billion yuan in dividends and 6.9 billion yuan in total interest expenses, and these expenses are only supported by 6.8 billion yuan in net rent profit and 2.7 billion yuan in gas dividends.