The Zhitong Finance App learned that Citi released a research report saying that maintaining the “buy” rating of CNOOC Properties (02669), due to last year's performance being 5% lower than expected, and management's more conservative goals, the profit forecast for this year and next two years was lowered by 15%-19%, and the target price was lowered from HK$8.8 to HK$7.

According to the report, the company's stock price declined after disclosing last year's results, probably due to a slowdown in earnings in the second half of last year, a 6.6% year-on-year increase (partly due to a high base), and weak value-added services (VAS) performance. Management focuses on the competitiveness of the top three in the industry and may review the 30% dividend policy based on shareholders' needs, and is also committed to achieving double-digit profit growth.

The bank believes that CNOOC Property management's goals are wise and steady in the industry/macro context. The bank still sees the company's net profit margin (stable at about 10%) supported by third party expansion and cost/efficiency, and healthy cash flow (5 billion yuan in net cash, 25% increase over the previous year).