Huatai: Maintains Buy rating on China Hongqiao (01378.HK), target price HK$32.28

Zhito Finance APP has learned that Huatai Securities issued a research report maintaining its forecasts for China Hongqiao's (01378.HK) net profit attributable to parent for 2026-2028 at RMB 30.443 billion, RMB 27.119 billion, and RMB 29.720 billion, corresponding to EPS of RMB 3.21, RMB 2.86, and RMB 3.14, respectively. Based on the DDM absolute valuation method, assuming a dividend payout ratio of 62% for 2026-2028, and based on assumptions of a risk-free rate of 4.4%, a risk premium of 5.9%, a beta of 1.08, a cost of equity of 10.79% (previous value: 10.67%), and a perpetual growth rate of 3.0%, the company's target market capitalization is calculated at HKD 316.99 billion, corresponding to a target price of HKD 32.28 (previous value: HKD 32.67), maintaining the "Buy" rating.