Zhi Tong Cai Jing·2025-09-29 02:58Core Viewpoint - The report from CMB International maintains a target price of HKD 9.42 for Chow Tai Fook Enterprises (00659) and a "Buy" rating, indicating confidence in the stability of the company's various business segments and potential for growth in financial services [1] Group 1: Business Performance - The company expects a rebound in logistics rental rates and benefits from the 2025 policy report on accelerating the development of the Northern Metropolis, which will offset uncertainties in other business segments [1] - The financial services segment's Adjusted Operating Profit (AOP) increased by 29% to HKD 1.242 billion, indicating strong growth potential [2] - The overall performance for the fiscal year 2025 is projected to show a 7% year-on-year increase in AOP to HKD 4.466 billion, surpassing previous forecasts [1][2] Group 2: Dividend Policy - The company proposed a final dividend of HKD 0.35 per share, maintaining last year's level, leading to a total dividend of HKD 0.95 per share for fiscal year 2025 [1] - The company plans to maintain a long-term progressive dividend policy to ensure growth in shareholder returns [1] Group 3: Financial Outlook - The company anticipates a decrease in financing costs, projected at 4.7% for the fiscal year 2024 and 4.1% for 2025, which will support profit growth [1] - The estimated dividend yield for fiscal years 2026-2027 is expected to reach 8.4% and 8.8%, respectively, highlighting the attractiveness of the stock [1]