Core Viewpoint - Citigroup's report indicates that Kowloon Warehouse Group (00004) has a debt ratio of 4.4%, and when considering its long-term investments of HKD 48 billion, with HKD 39.8 billion in stock holdings treated as quasi-cash, the company effectively holds HKD 33 billion in net cash, representing 50% of its market value [1] Financial Summary - The company is not in a hurry to reinvest due to macroeconomic uncertainties and market conditions, and may focus on monetizing existing land reserves [1] - Citigroup maintains a "Sell" rating on Kowloon Warehouse, lowering the target price from HKD 18.8 to HKD 18.3 [1] Shareholder Returns - The report suggests that investors may be pricing in expectations for increased shareholder returns, but the company is expected to maintain stable dividends per share without an increase [1] - The likelihood of share buybacks is considered low by Citigroup [1] Valuation Insights - Kowloon Warehouse is viewed as having the highest valuation in the industry, with a strong balance sheet allowing for various actions within the group, though this may not necessarily benefit the stock price [1]

Core Viewpoint - The article emphasizes the importance of consistent dividend payments as a measure of shareholder value, highlighting that companies like ExxonMobil have maintained or increased their dividends for over 20 years, even during challenging times like 2020 [1][3]. Dividend Stability - ExxonMobil has not decreased its per-share dividend for over 20 years, demonstrating a stable expectation for investors, even with a relatively low pre-tax dividend yield of around 3% [1][3]. - Chevron has also consistently increased its dividends over the past 20 years, similar to ExxonMobil [7]. Comparison with CNOOC - CNOOC's dividend history shows significant fluctuations, with per-share dividends of 0.78 HKD in 2019, 0.45 HKD in 2020, and 1.48 HKD in 2021, leading to uncertainty for individual investors [10][11]. - The article suggests that CNOOC does not provide the same emotional value to investors as ExxonMobil, as its dividend payments are less predictable [11]. Financial Position - As of the end of 2024, CNOOC has cash of 247 billion, with net cash of 163.4 billion after deducting interest-bearing debt of 83.6 billion, indicating a strong financial position compared to ExxonMobil's negative net cash of -18.5 billion [13][15]. - Despite CNOOC's superior net cash position, the article questions the stability of its dividend payments and emotional value for shareholders compared to ExxonMobil [15]. Valuation Concerns - The article highlights that while CNOOC has advantages in various financial metrics, its valuation is only one-third of ExxonMobil's during the same period, raising questions about its market perception [17]. - The inconsistency in CNOOC's dividend payments and the lack of a stable emotional value for investors are pointed out as significant drawbacks [17].