Citibank: Downgrade China Yangtze Power Group (01038.HK) target price to HKD 70 as management guidance indicates a cooling expectation for special dividends.

According to the Zhicheng Finance APP, Citigroup has released a research report stating that Cheung Kong Infrastructure Holdings Limited (01038.HK) had a strong performance in the first half of the year, benefiting from gains from asset sales. However, the management team took a more conservative stance on the guidance for special dividend distribution during the earnings call compared to market expectations, leading the bank to lower its target price. Taking into account factors such as return rate resets and exchange rate adjustments, Citigroup has revised its earnings forecasts for Cheung Kong Infrastructure for 2026 to 2028 downward by 4% to 8%, and has raised the weighted average cost of capital due to a weakening catalyst for special dividends. The target price has been decreased by 5% from HKD 73.5 to HKD 70, while maintaining a "Buy" rating, with optimism regarding the potential upside from possible mergers and acquisitions.