Jinwu Finance | Guangdong Inv (00270) saw a strong stock price in the morning, reporting HKD 5.69, a rise of 9%, with a transaction volume of HKD 0.242 billion.

News suggests the company proposes to distribute special dividends in the form of shares of gd land (00124), with a benchmark of 0.193 shares of gd land for every 1 share held, involving the distribution of 1.261 billion shares, accounting for approximately 73.72% of gd land's equity. Guangdong Inv intends to streamline its business activities and focus resources on core business operations through this proposed distribution, thereby divesting the property development business held by the gd land group to maintain stable business development.

Citibank is bullish on this move, believing that the trade will enhance the profitability visibility of Guangdong Inv and improve the group's financial situation due to a decrease in the debt-to-assets ratio. At the same time, Citibank projects that Guangdong Inv's yield in 2025 will be 7.6%, the highest among Hong Kong's utilities industry, making it very attractive. Therefore, the bank raised Guangdong Inv's rating from 'neutral' to 'buy' and increased the target price by 25%, from HKD 4.8 to HKD 6.