Goldman Sachs: Upgrades China Agri-Industries Holdings (01866.HK) to "Buy" with a target price raised to 14 Hong Kong dollars.

According to the Zhixingtong Financial APP, Goldman Sachs released a research report stating that China's Kingenta Group (01866.HK) is expected to underperform the bank's expectations and market consensus by 2025, mainly due to lower than expected urea sales. The company recommends a final dividend of 0.32 RMB per share, which implies a dividend payout ratio of 42% for 2025, compared to 22% in 2024. The bank has raised its forecasts for the company's ongoing profits in 2026, 2027, and 2028 by 43%, 19%, and 16% respectively, considering higher urea prices and coal chemical profits, enough to offset higher benchmark coal prices. The rating has been upgraded from "Neutral" to "Buy", and the target price has increased from 8.5 HKD to 14 HKD.