Citigroup believes that the group's earnings for 2024 to 2025 will be affected by the development of property projects and the possible pressure on the profit margins of several projects in Hong Kong.
According to the financial news app, Citigroup maintains a "neutral" rating on CK Asset and expects earnings to be affected by development property projects and the possible pressure on the profit margins of several projects in Hong Kong. The target price has been reduced from HKD 36 to HKD 33.5.
CK Asset stated that future dividends will be linked to earnings per share, which is expected to result in greater variation in the future dividend per share. The bank points out that investors may currently be disappointed with the dividend and see buybacks as having lower predictability for returns; however, the bank notes that the company's total shareholder return in the first half of the year, along with the HKD 1.5 billion buyback plan, actually increased by 0.6% year-on-year, and it believes that the company's recurring profit portfolio is resilient.