Citigroup: Raise Jian Tao Group's target price to 48 Hong Kong dollars, expected core profit compound annual growth rate of 24% over the next three years.

Citigroup's report states that Jian Tao Group's revenue is expected to increase by 5% to 45.375 billion Hong Kong dollars by 2025, in line with market expectations; net profit is expected to rise by 170% to 4.402 billion Hong Kong dollars, higher than the previous profit guidance of over 4.32 billion Hong Kong dollars, mainly due to higher-than-expected investment income of 2.635 billion Hong Kong dollars. Adjusted core net profit is expected to decline by 4% to 2.635 billion Hong Kong dollars annually. With the recent issuance of 4% equity in Jian Tao laminates, the bank has revised down the company's 2026 core profit forecast by 11%. Due to the upcoming operation of multiple artificial intelligence upstream materials and chemical projects contributing to the first year's revenue, the bank has raised the profit forecast for 2027 by 4% and added a profit forecast for 2028, with a three-year compound annual growth rate of core profit reaching 24%, reaching 5.029 billion Hong Kong dollars. The bank has raised Jian Tao Group's target price from 45 Hong Kong dollars to 48 Hong Kong dollars, with a "Buy" rating. Based on the pure AI upstream material layout, the bank still believes that Jian Tao laminates are superior to Jian Tao Group, and expects its valuation to be further reassessed.