BOCI Securities: Raises Target Price of China Everbright Limited (01114.HK) to HKD 3.7 with Concerns of Sustainability of High Dividend Payout Ratio

According to the Wisdom Financial APP, China Construction International released a research report stating that, taking into account Huachen BMW's better-than-expected profitability in the first half of the year, as well as the increased losses of Shenyang Jinbei, the bank has raised its net profit forecast for Huachen China (01114.HK) for 2025 to 26 by 2% to 5% to 2.9 billion yuan and 2.7 billion yuan, respectively. Although the mid-term regular dividend amount may boost short-term market sentiment beyond expectations, given the shrinking profit contribution from Huachen BMW and the company's continuously declining net cash level, a cautious stance is maintained on the company's long-term high dividend payout level. Therefore, the "hold" rating is maintained, with the target price raised from 3 Hong Kong dollars to 3.7 Hong Kong dollars.