Citigroup's report stated that after recent meeting with Heng An (01044.HK) company management, it is believed that due to intense price competition, operational deleveraging, and decreasing government subsidies, the company's sales and profit margin in the second half of the year will face more severe trends than the first half. However, the management maintains the fixed annual dividend of 1.4 RMB per share, implying a dividend yield of 6.9%, which is an attractive level.

Citigroup lowered its net profit forecast for Heng An from 2024 to 2026 by 15% to 17%, reflecting weaker sales and profit prospects under industry adversity and intense price competition. The target price was lowered from 25 yuan to 21.1 yuan, equivalent to a forecast PE ratio of 9 times next year. Maintaining a 'neutral' rating on the stock.