Citigroup's preferred stock is Yangtze River Infrastructure (01038).
The Zhitong Finance App learned that Citi released a research report saying that considering the decline in the visibility of Guangdong Investment (00270) dividend, the rating was lowered from “buy” to “neutral”, the net profit forecast for 2024-25 was lowered by 23% to 25%, and the target price was drastically reduced by 35% to HK$4 from HK$6.2. The industry's preferred stock was Changjiang Infrastructure (01038).
The bank explained that Guangdong Investment's subsidiary Guangdong Land (00124) China's real estate development project recorded an impairment loss of 1.8 billion yuan last year, reducing the net book value of the property to 32.8 billion yuan. The bank expects it to record more impairment losses this year. Furthermore, Guangdong Investment cannot confirm the sustainability of the 65% dividend rate.