Huatai Securities: Initiating coverage on Yangtze Infrastructure Group for the first time, with a target price of HKD 64.73 and a "Buy" rating.

Huatai Securities released a research report pointing out that Changjiang Infrastructure Group is one of the world's largest global infrastructure groups, investing in energy, infrastructure, and utility-related businesses around the world. It contributes core profits from regulated assets and has a business model with strong risk resistance. In addition, Changjiang Infrastructure will resume mergers and acquisitions in 2024, and its future business map is expected to further expand. The company is believed to have ample cash flow, with historical dividends per share increasing year by year. The dividend yield is expected to be 4.5% in 2024. Huatai Securities initiated coverage on Changjiang Infrastructure for the first time, with a target price of 64.73 Hong Kong dollars (1.32 times the multiple), giving it a "buy" rating. The company predicts that Changjiang Infrastructure's net profit attributable to shareholders for 2025-2027 will be 8.34 billion, 8.66 billion, and 8.97 billion Hong Kong dollars respectively, corresponding to earnings per share and net asset per share of 3.31 Hong Kong dollars and 48.86 Hong Kong dollars for 2025. Huatai Securities referenced a historical 3-year PB average of 0.96 times, considering that the company's business model has strong risk resistance, multiple assets will see a period of increased returns in 2025 and 2026; the resumption of mergers and acquisitions by Changjiang Infrastructure will bring additional profit contributions; and dividends per share have increased annually since the company went public.