Citibank: Raises target price for GUANGDONG INV (00270) to 8.8 Hong Kong dollars, dividend yield attracts as preferred Hong Kong utility stock.

Citi released a research report stating that it reiterated a "buy" rating for GUANGDONG INV (00270), due to its positive profit announcement yesterday (28th). The company is expected to see a 43% year-on-year increase in net profit to HK$4.493 billion, which is about 2% higher than market expectations mainly because interest expenses were lower than expected. Citi said, based on the above reasons, it has raised its net profit forecast for GUANGDONG INV in the next two years by 2.1% to 2.6%. Due to profit growth and valuation roll forward, the target price has been raised by 10% from the original HK$8 to HK$8.8. The group predicts a dividend yield of 6.3% by 2025, which is attractive and the highest among peers, making it Citi's top choice for public stocks in Hong Kong.