Citi upgrades Country Garden Services (06098.HK) target price to 7.1 Hong Kong dollars and maintains a "hold" rating.

The Economic Information App learned that CITIC Securities has released a research report stating that the target price of Country Garden Services (06098.HK) has been raised by 36.5%, from 5.2 Hong Kong dollars to 7.1 Hong Kong dollars, maintaining a "hold" rating. CITIC Securities pointed out that the decrease in profits of Country Garden Services in the first half of 2025 reflects the continued challenges facing the entire industry. However, the board of directors announced an increase in the basic dividend payout ratio from 32.6% in the 2024 fiscal year to 60% in the 2025 fiscal year, as well as a 500 million RMB share repurchase plan. CITIC Securities has therefore raised the company's 2025 profit forecast by 3.2% and lowered the 2026 profit forecast by 6.8% to reflect changes in impairment loss forecasts, and has adjusted the valuation method back to the traditional price-to-earnings ratio (PE).