Core Viewpoint - Citigroup reaffirms a "Buy" rating for Beijing Enterprises Water Group, raising the target price from HKD 2.65 to HKD 2.85, and adjusting net profit forecasts for 2025 to 2027 upwards by 1% to 2% due to reduced financial costs [1] Group 1 - The company is expected to achieve an attractive dividend yield of 6.9% in 2026, supported by a backdrop of easing monetary policy in China and interest rate cuts in the US [1] - It is anticipated that the company will generate approximately HKD 1 billion in positive free cash flow annually in the coming years, which will be used for dividends and debt repayment as operating income increases and capital expenditures decrease [1] - The cash recovery situation for accounts receivable is continuously improving due to government debt repayment efforts [1] Group 2 - Increased free cash flow is expected to support gradual dividend growth, with a projected annual increase of 3% to 5% in dividends by 2025 [1]
大行评级｜花旗：上调北控水务目标价至2.85港元 预计未来现金流及派息将增加