Damo said it viewed the Taikoo Joint Stock Company A (00019) repurchase plan positively because it supports higher capital returns, and indicated that Taikoo's valuation is still attractive.
The Zhitong Finance app learned that Daimo published a research report stating that Taikoo Joint Stock Company A (00019) was given an “increase in holdings” rating, with a target price of HK$69. Taikoo Group announced that it will launch a new repurchase plan of up to HK$6 billion from now until May 2025, which is equivalent to 9% of the current market value. The bank believes that the repurchase plan is viewed positively because it supports higher capital returns, and indicates that Taikoo's valuation is still attractive because the current price is equivalent to the predicted price-earnings ratio of 7 times in 2023, while the dividend rate is 6.2%. Furthermore, Cathay Pacific (00293)'s recent recovery has also contributed to improvements in its fundamentals. The Hong Kong Government and Swire Properties (01972) have redeemed 50% of their preferred shares. The recent sale of the One Island East office floor was positive.