Glonghui, May 17 | Citi published a research report stating that Beijing Water's free cash flow for fiscal year 2023 was 1.1 billion yuan, and operating cash inflows increased. The rating was raised from “sale” to “buy” in one fell swoop, and the target price was doubled from HK$1.45 to HK$2.9. The bank believes that the Group's net profit forecast for 2024-26 will be increased by 2% to 4% due to higher water supply costs and lower financial costs. The bank said it is optimistic about the Group because of the increase in its water operating revenue, retail water supply prices for 10 operating projects may rise this year, and profit quality has improved. The share of non-cash construction business revenue will drop from 63% in 2019 to 22% in 2023. Furthermore, in 2024, free cash flow became more positive, and capital expenditure was reduced by 12% to 6 billion yuan year-on-year. The Group aims for a stable dividend of HK$0.157 per share in 2024.