CHINA TRAVEL HK (00308) surged nearly 5% in early trading. As of press time, the stock was up 2.78% at HK$1.48, with a turnover of HK$30.26 million.
The rise follows the ex-date of the company's in-kind distribution plan on November 18. Earlier in October, CHINA TRAVEL HK announced an internal restructuring and spin-off of its tourism property business. The business will be held by a private company, China Travel Wellness & Resort Holdings Limited, with shares distributed in-kind to shareholders as part of the spin-off.
Citi issued a research report raising the target price for CHINA TRAVEL HK from HK$1.47 to HK$1.57, reflecting the proposed restructuring. However, due to a lack of additional information, the bank maintained its existing earnings forecast and reiterated a "Buy" rating.
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