Huatai Securities raises the target price of SHENZHEN INT'L to 10.1 yuan, expecting an annual dividend yield of 9.8%

Huatai Securities research report indicates that SHENZHEN INT'L (00152.HK) had a revenue of 6.67 billion yuan in the first half of the year, an increase of 0.9% year-on-year; the net profit attributable to shareholders was 490 million yuan, a decrease of 24.9% year-on-year, which is 63% higher than the bank's expectation of 300 million yuan, mainly due to the joint venture income of 290 million yuan from the sales of residential properties in Qianhai Phase III. The year-on-year decline in net profit was mainly due to the issuance of public REITs in the same period last year, which recorded a post-tax income of 587 million Hong Kong dollars, while there was no such income during this period. However, the leasing of logistics parks and large environmental operations improved year-on-year, and financial costs decreased year-on-year.

Looking ahead, the bank believes that the transformation project of South China logistics parks may still be an important source of profit and is expected to continue contributing profits in the medium term. If the company maintains a 50% dividend payout ratio, based on the closing price on August 27, the bank expects a full-year dividend yield of 9.8% for 2025, which is highly attractive. The rating is maintained at "Buy," with a 6% upward revision of this year's earnings forecast, and a 4% and 3% downward revision for the next two years, with the target price raised from 9.3 yuan to 10.1 yuan