Citigroup: Raises CITIC (00267) target price to 13.4 Hong Kong dollars, slightly exceeding last year's performance expectations.

Citigroup's research report stated that CITIC (00267) continues to expand its overseas business and achieve effective cost control, with the cost-to-income ratio falling by 2 percentage points to 36.4% last year. The target price has been raised from HK$13 to HK$13.4, with an estimated dividend yield of about 6% by 2026, providing significant downside protection for investors; maintaining a "buy" rating. Despite a challenging operating environment last year, CITIC recorded a 1% year-on-year increase in net profit to 58.7 billion RMB, 2% higher than the bank's expectations. The dividend payout ratio increased from 27.5% to 29%, 1 percentage point higher than guidance, and the bank believes that management is still committed to increasing the dividend payout ratio again in 2026 as previously guided.