Bank of America Securities published a report indicating that GD HOLDING (00270.HK) plans to distribute GD LAND (00124.HK) as a special dividend, which essentially involves disposing of its Real Estate Development subsidiary. The bank expects this Trade to enhance the group's profitability and earnings per share forecasts, primarily benefiting from reduced financial costs and impairment losses; increased earnings visibility; the company's Business becoming more robust, making it a more attractive Stocks.

The bank has raised GD HOLDING's earnings forecasts for the fiscal years 2025 and 2026 by 21% and 11%, respectively, raising the Target Price from 5.2 to 6.2, while reiterating a "Buy" rating. It is estimated that after disposing of GD LAND, the company's earnings per share and dividends per share for the fiscal year 2025 will grow by 39%, and with the elimination of impairment risks, there will be more re-evaluation opportunities. Additionally, the bank states that GD HOLDING's forecasted dividend yield for the fiscal year 2025 of 8.4% is attractive.