CICC Cuts CG Services Target Price by 17% to HK$6.5, Holds Neutral Rating as Interim Results Meet Expectations

Stock News15:54

CICC has released a research report maintaining its earnings forecasts for fiscal 2026 and 2027, while keeping a "Neutral" rating on CG Services (06098) and trimming the target price by 17% to HK$6.5, reflecting a decline in market risk appetite toward the sector. At the current share price, the stock trades at a forecast core price-to-earnings ratio of 6 times for 2026, with an expected dividend yield of 9.5% for the same year.

The income statement of CG Services shows early signs of stabilization, and the firm maintains a positive view on shareholder returns. In the first half of the year, revenue grew 6% year-on-year to RMB 24.5 billion; net profit declined 5% year-on-year to RMB 950 million; and core net profit rose 3% year-on-year to RMB 1.62 billion, resuming annual growth. These results were in line with the bank's expectations.

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