Citigroup has released a research report, which downgrades the profit forecast for Shenzhen International (00152.HK) for FY2024 and FY2025 by 16% and 22% respectively to reflect the 2023 performance and latest business updates from management.
The bank believes that the group's toll roads and logistics park businesses will perform basically flat, while the new Jingjiang port project will begin to contribute to revenue. In addition, the company maintains a stable 50% payout ratio and believes that its 9.3% dividend yield is attractive, reiterating a "buy" rating and lowering the group's target price from HKD 10.1 to HKD 8.4.