Citigroup has issued a research report stating that CITIC (00267) continues to expand its overseas operations while effectively controlling costs. Last year, the cost-to-income ratio decreased by 2 percentage points to 36.4%. The bank raised its target price from HK$13 to HK$13.4, projecting a dividend yield of approximately 6% by 2026, which could provide significant downside protection for investors. It maintained a "Buy" rating. Despite a challenging operating environment last year, CITIC still achieved a net profit of RMB 58.7 billion, up 1% year-on-year, exceeding the bank's expectations by 2%. The dividend payout ratio increased from 27.5% to 29%, 1 percentage point higher than guidance. The bank believes management remains committed to further increasing the payout ratio by 2026, as previously indicated.
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