Lion: Raise target price of TAIGUk (00019) to HKD 91, rating "Outperform the market"

Lion released a research report stating that Taikoo A (00019) reported a 11% year-on-year increase in recurring profit in the second half of last year to 5 billion Hong Kong dollars, higher than expected. The final dividend was 2.5 Hong Kong dollars, a 19% increase year-on-year, higher than expected. The bank indicated that the group's recurring profit forecasts for this year and next year were raised by 8% and 7% respectively to 10.9 billion Hong Kong dollars and 12.2 billion Hong Kong dollars. Its target price was raised from 74 Hong Kong dollars to 91 Hong Kong dollars, maintaining its rating as "outperform the market". The bank believes that SWIREPROPERTIES (01972) and CATHAY PAC AIR (00293) have good conditions to drive the profit growth of SWIREPROPERTIES. The bank also noted that the strong cash flow, strong balance sheet performance, and stable dividend growth make Taikoo Group an ideal income hedge asset for investors.