Morgan Stanley has released a research report stating that, assuming Guangdong Investment's (00270) dividend payout ratio of 65% remains unchanged, it sees potential upside in the dividend per share. The firm forecasts last year's dividend per share to be HK$0.45, higher than its initial projection of HK$0.41. It has assigned the group a target price of HK$7.74 with an "Overweight" rating. Guangdong Investment issued a profit alert, anticipating its attributable net profit for last year to increase by 43% year-on-year to HK$4.493 billion, surpassing the bank's forecast of HK$4.127 billion. Morgan Stanley indicated that the group's profit alert was primarily due to the deconsolidation of GD LAND (00124) from the accounts starting January of last year, following its recognition of significant losses in the 2024 financial year, coupled with reduced financing costs and administrative expenses.
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