On August 19, Guo Gongming Railway (0066.HK) recorded a net profit of HKD 6.04 billion in the first half of the year, a year-on-year increase of 44.7%, with earnings per share of HKD 0.97. The interim dividend was HKD 0.42 per share, flat year-on-year. Goldman Sachs has published a report that the Company's interim results exceeded expectations, reflecting a strong recovery in its Hong Kong operations. It maintains a "buy" rating and a 12-month target price of HKD 33.9. The report pointed out that the Company's core net profit in the first half of the year rose by 83% year-on-year to HKD 5.8 billion, higher than Goldman Sachs' forecast of HKD 4.8 billion, and excluding the high profit from property development, the performance was also driven by the strong recovery of its Hong Kong operation business, which is comparable to 77% in the first half of 2019, despite the impact of the COVID-19 pandemic. Although the Company's net debt-to-equity ratio increased, the Bank believes that its balance sheet is still healthy and has not affected its dividend-paying ability. Goldman Sachs also pointed out that the Company periodically adjusts its strategy, negotiates with the government and developers, tries to ensure reasonable returns, and reduces the potential downside risks of the Hong Kong property market. Goldman Sachs believes that the Company's monopoly position in Hong Kong can maintain income stability, and its current dividend yield of 5.1% is not expensive compared to other local utilities industry, hence the "buy" rating is maintained.