Zhi Tong Cai Jing·2025-09-17 03:48Group 1 - The core viewpoint of the report is that the company Chow Tai Fook Enterprises (00659) is given a "Buy" rating with a target price of HKD 9.42, based on a sum-of-parts valuation model plus a 30% liquidity discount [1] - Chow Tai Fook Enterprises has a diversified business portfolio primarily located in Hong Kong and mainland China, with stable cash flow and growing insurance business driving profit outlook [1] - The insurance business (Chow Tai Fook Life) is expected to become the main profit driver, with its contribution to Adjusted Operating Profit (AOP) projected to increase from 23% in FY2024 to 34%/36% by FY2028/29 [1] Group 2 - The company has a progressive high dividend policy, with core earnings per share (DPS) expected to grow from HKD 0.58 in FY2020 to HKD 0.65 in FY2024, and a projected dividend yield of 8.4%/8.8%/9.2% for FY2025/26/27 [2] - Chow Tai Fook Enterprises has achieved an adjusted EBITDA of HKD 5-7 billion in recent years, with a dividend payout ratio of approximately 35-40% [2] - Revenue and AOP are anticipated to grow at a compound annual growth rate (CAGR) of 5.6% from FY2025 to FY2029, with AOP expected to increase by about 10% over the next two years [2]