Ge Long Hui·2025-09-30 03:19Core Viewpoint - The report from CMB International indicates that Chow Tai Fook's adjusted operating profit (AOP) for the fiscal year ending June 2025 is expected to grow by 7% year-on-year to HKD 4.466 billion, surpassing the bank's expectations [1] Financial Performance - Shareholder profit is projected to see a slight year-on-year increase of 4% to HKD 2.162 billion [1] - Adjusted EBITDA is anticipated to rise by 1% year-on-year to HKD 7.316 billion [1] Growth Drivers - Financial services are highlighted as a key growth area for the future [1] - The company is actively expanding its financial services platform, including the acquisition of a 43.93% stake in technology-driven brokerage firm uSMART and a 65% stake in external asset management company Blackhorn [1] - The aim is to create a comprehensive wealth management ecosystem [1] Investment Outlook - CMB International maintains a "Buy" rating for Chow Tai Fook, believing that the company's various business segments will remain stable [1] - Anticipated rebound in logistics rental rates and benefits from the 2025 Policy Address regarding the accelerated development of the Northern Metropolis are expected to support the construction business [1] - Rapid growth in financial services is also expected to contribute positively [1] - The company is projected to see a further decline in financing costs, aiding profitability [1] - The current valuation is considered attractive, with a forecasted dividend yield of 8.4% and 8.8% for the fiscal years 2026 and 2027, respectively [1] - The target price is set at HKD 9.42 [1]