Yamato: SITC (01308) rating downgrade to "hold", wait for a better entry point suggestion.

Yamato released a research report stating that the rating of SITC (01308) has been downgraded from "buy" to "hold", and it is advisable to wait for a better entry point. However, the target price has been raised from 31 Hong Kong dollars to 32 Hong Kong dollars, equivalent to a forecasted P/E ratio of 9 times. SITC announced a final dividend of 0.13 US dollars per share, along with interim dividends and special dividends of 0.17 US dollars and 0.09 US dollars per share, respectively. The full-year dividend for 2025 is expected to be 0.39 US dollars per share, with a payout ratio of 85%. SITC's revenue for 2025 is expected to increase by 12% year on year to 3.412 billion US dollars, supported by a 4.5% and 7.8% year-on-year increase in average selling price and sales volume, respectively. The gross profit margin is expected to expand by 1 percentage point to 38.4% year on year, leading to a 19% year-on-year increase in profit to 1.23 billion US dollars. In the second half of 2025, revenue is expected to decline by 1% year on year, and the gross profit margin is expected to decrease by 5.4 percentage points to 36.7% year on year, due to the high base in the previous year and the first half of 2025.