---
title: "HSBC Research: KERRY PPT's cash flow provides visibility for dividend stability, slightly raising target price to HKD 22.6"
description: "HSBC Global Research report pointed out that KERRY PPT's performance in the first half of the year was weak, with a year-on-year decline of 30% in underlying profit. The company's business is progress"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/253908944.md"
published_at: "2025-08-21T03:28:32.000Z"
---

# HSBC Research: KERRY PPT's cash flow provides visibility for dividend stability, slightly raising target price to HKD 22.6

> HSBC Global Research report pointed out that KERRY PPT's performance in the first half of the year was weak, with a year-on-year decline of 30% in underlying profit. The company's business is progressing smoothly, and it is expected that the net debt ratio will decrease to 30%-33% in the next fiscal year. Although there is a time lag between contract sales and revenue recognition, the cash flow situation will improve, providing good visibility for dividend stability. Based on the forecasted dividend yield of 6.5 cents in 2026, the "Buy" rating is maintained, and the target price is slightly raised to HKD 22.6

HSBC Global Research report indicates that KERRY PPT (00683.HK) had weak performance in the first half of the year, with underlying profit down 30% year-on-year, in line with expectations. The company's business is progressing smoothly and is consistent with management's plans, including the deleveraging process and property sales. Management expects the net debt ratio for the next fiscal year to decrease to around 30% to 33%, down from the previous guidance of around 33% to 37%, benefiting from higher sales prices achieved in the Shanghai Jinling Huating project. The company anticipates that the next sales prices may be even higher.

The report states that the company's net debt ratio as of the end of June decreased by 3.1 percentage points year-on-year to 38.4%. Although there is a time lag between contract sales and revenue recognition, the company's cash flow situation should continue to improve, providing good visibility for dividend stability. Based on a forecasted dividend yield of 6.5% for 2026, the stock is maintained at a "Buy" rating, with the target price slightly adjusted from HKD 22.3 to HKD 22.6

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.