BOC International believes that the valuation of Baosheng International (03813) has been seriously undervalued.
The Zhitong Finance App learned that BOC International released a research report stating that it maintains the “buy” rating of Baosheng International (03813), with a target price of HK$1.46. The parent company, Yuyuan Group (00551), surged 33% due to the restoration of dividends, with a dividend rate of 10%. The company resumed dividends in 2023, paying 0.031 yuan per share, with a dividend rate of 4.6%, and a dividend ratio of 30%. The bank believes that Baosheng's valuation was seriously undervalued, shifting from net debt at the end of 2023 to net cash of RMB 2.8 billion or HK$0.6 per share.