Core Viewpoint - Citigroup reaffirms a "Buy" rating for Beijing Enterprises Water Group (00371) and raises the target price from HKD 2.65 to HKD 2.85, reflecting a 1% to 2% increase in net profit forecasts for 2025 to 2027 due to reduced financial costs [1] Group 1 - 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] - The cash recovery status of accounts receivable is continuously improving due to government debt repayment, which will further support the gradual increase in dividends, with a projected year-on-year growth of 3% to 5% in dividends by 2025 [1]