Core Viewpoint - Citigroup reaffirms a "Buy" rating for Beijing Enterprises Water Group (00371), raising the target price from HKD 2.65 to HKD 2.85, and adjusting net profit forecasts for 2025-2027 upwards by 1% to 2% due to reduced financial costs [1] Group 1: Financial Performance - The company is expected to achieve a dividend yield of 6.9% in 2026, which is considered attractive in the context of China's easing monetary policy and U.S. interest rate cuts [1] - It is anticipated that the company will generate approximately RMB 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] Group 2: Cash Flow and Debt Management - The cash recovery situation for accounts receivable is continuously improving due to government debt repayment efforts [1] - Increased free cash flow is expected to support gradual dividend increases, with a projected year-on-year growth of 3% to 5% in dividends by 2025 [1]
花旗：升北控水务目标价至2.85港元 料现金流及派息增加