Citigroup: Lowers the target price for Genius Electric (00006.HK) to HKD 66.5, management guidance indicates expectations for special dividends have cooled.

According to the Zhitong Finance APP, Citibank has released a research report stating that the earnings of CLP Holdings (00006.HK) in the first half of the year performed strongly due to gains from asset sales. However, the management was more conservative than market expectations regarding the guidance for special dividends during the earnings conference, leading the bank to downgrade its target price. Taking into account the resetting of return rates, increased interest income, and the weakening catalyst for special dividends, Citibank raised its earnings forecast for CLP Holdings from 2026 to 2028 by 7% to 11%. Nevertheless, due to the cooling expectations for special dividends, the weighted average cost of capital has been raised, and the target price is reduced by 5% from HKD 70 to HKD 66.5. The "Buy" rating is maintained, optimistic about the potential upside from mergers and acquisitions and a 4.9% dividend yield.