Bank of America Securities: Reiterates "Buy" rating on CHINA STATE CON(03311) with target price reduced to HK$12.

Bank of America Securities released a research report stating that the valuation of CHINA STATE CON (03311) is reasonable, and the yield is attractive. They reiterated a "buy" rating with a target price lowered from HK$12.6 to HK$12. The bank pointed out that due to the downward adjustment of the company's income forecast, its profit forecast for 2026 and 2027 was correspondingly reduced by 4% and 9%. The report stated that CHINA STATE CON's net profit last year was flat at 8.6 billion yuan, in line with the bank's forecast. Revenue fell by 5% year-on-year, while the comprehensive gross profit margin increased by 0.4 percentage points to 15.9%. The company declared a final dividend of HK$0.625, a 1.6% year-on-year increase, implying a dividend payout ratio increase of 1.9 percentage points to 35%.