The Zhitong Finance App learned that Guangdong Investment (00270) fell by more than 4%, hitting a new low of HK$3.29 in the intraday period. As of press release, it decreased by 4.29% to HK$3.35, with a turnover of HK$116 million.
According to the news, Guangdong Investment achieved revenue of HK$24.2 billion in 2023, up 4.3% year on year; profit attributable to the company's owners was HK$3.122 billion, a decrease of 34.5% year on year; it plans to pay a final dividend of HK12.33 cents per share. This dividend plus the interim dividend already paid in October 2023 is HK$18.71 cents per share. The total dividend for the year is HK31.04 cents per share and HK61.33 cents in 2022.
Citibank pointed out that Guangdong Land China's real estate development project, a subsidiary of Guangdong Investment, recorded a 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. The bank downgraded the company's rating from “buy” to “neutral”, and the target price was drastically reduced by 35% to HK$4 from HK$6.2.