The Zhitong Finance App learned that Xiaomo released a research report saying that maintaining Guangdong Investment's (00270) “plus” rating, it is estimated that its dividend for fiscal year 2023 may be cut. If the company maintains its current dividend (FY2022 > 80%), it is expected that its dividend for fiscal year 2023 may also be cut by 35% (HK40 cents per share) according to the bank's estimate, with a target price of HK$7.25. The company issued a profit warning. It is estimated that profit for 2023 will be reduced by about 35% compared to 4.764 billion yuan in 2022. Mainly due to the continued downturn in the mainland real estate market, the Group's property turnover shrank, sales prices also fell, and properties under development for sale depreciated during the year.

The bank expects investors to react negatively to the above announcement of Guangdong Investment. This is mainly due to the impairment of real estate development projects. Although these are all non-cash expenses, the bank believes that Guangdong Investment Management may cut dividends for fiscal year 2023 to maintain a stable dividend ratio (84% in 2022), which means a yield of about 7%. The bank will await further details from Guangdong Investment Management on the updated dividend policy and its capital allocation. In addition, Guangdong Land (00124), a subsidiary of Guangdong Investment, disclosed that the real estate inventory impairment provision was estimated at about 2.408 billion yuan during the period. The impairment mainly targeted second-tier and third-tier city projects such as Jiangmen, Zhongshan, and Zhuhai. As of the first half of 2023, Guangdong Land had completed properties for sale and properties for sale and development worth HK$35 billion.