CITIC(HK:00267) 智通财经网·2025-04-09 02:56Core Viewpoint - CITIC Limited (00267) is undervalued in the market despite its strong performance and diversified business model, with a significant gap between its stock price and intrinsic value, as evidenced by a price-to-earnings ratio of 3.8 and a price-to-book ratio of 0.29, compared to industry averages [1][2] Valuation and Market Performance - As of April 7, CITIC's market capitalization is approximately HKD 240 billion, while the combined market value of its listed subsidiaries exceeds RMB 1 trillion, indicating a substantial undervaluation [2] - The company's stock price is currently around HKD 9, which is nearly 70% lower than its net asset value of HKD 26.04 per share [1] Financial Performance - In 2024, CITIC reported a revenue of HKD 752.87 billion, a year-on-year increase of 10.6%, and a net profit attributable to shareholders of HKD 58.202 billion, up 1.1% [6] - The financial sector contributed 37.37% of total revenue, with a net profit of HKD 52.6 billion, reflecting a 4.3% growth [7] Dividend Policy - CITIC has a strong dividend policy, having distributed over HKD 120 billion in dividends over the past ten years, with a dividend yield of approximately 7% in the last three years, significantly above the market average [5] - The company plans to increase its dividend payout ratio, targeting a yield of 27.5% in 2024, with further increases planned for 2025 and 2026 [5] Strategic Initiatives - CITIC is focusing on technology innovation and international expansion, with a technology investment of HKD 25.2 billion in 2024, representing an investment intensity of 3.34% [9] - The company is enhancing its global presence, with overseas assets reaching HKD 1.15 trillion, a 13.7% increase year-on-year, and overseas revenue surpassing HKD 100 billion, up 21.8% [11] Business Model and Synergy - The dual-engine model of finance and industry provides stability, with the financial sector acting as a "ballast" for the company's overall performance [7] - The industrial sector is advancing through initiatives like the "Star Plan," which aims to upgrade operations and enhance profitability [8] Future Growth Potential - CITIC's strategic focus on emerging industries and technological advancements is expected to create a "second growth curve," with significant investments in AI and other technologies [9] - The company's international strategy includes deepening cooperation along the "Belt and Road" initiative, which is anticipated to be a major growth driver for exports [12]