HK Stock Market Move | FU SHOU YUAN (01448) surged over 5% with plans to declare a special dividend. Citigroup expects the company's operating cash flow to be strong.

FU SHOU YUAN (01448) rose more than 5%, by the time of the report, it had risen by 5.14% to 3.89 Hong Kong dollars, with a trading volume of 19.9883 million Hong Kong dollars. On the news front, FU SHOU YUAN announced that the board of directors meeting will be held on January 24, 2025 (next Friday) to consider the proposal to declare a special dividend to the company's shareholders. Citigroup's previous research report pointed out that based on the bank's expectation of strong operating cash flow exceeding 1 billion yuan from 2025 to 2026, as well as excess net cash on the balance sheet, FU SHOU YUAN should be able to maintain its dividend payout ratio at 60% during the period and pay special dividends. The bank predicts that the total dividend payout ratios in 2024, 2025, and 2026 will increase to 143%, 121%, and 112%, respectively, compared to 97% in 2023.