HSBC Research raises the target price of GUANGDONG INV to 7.8 yuan, with resilient operations in the water business

HSBC Global Research published a report stating that Guangdong Investment (00270.HK) announced a net profit of HKD 4.067 billion for the first nine months of 2025 (a year-on-year increase of 13%), in line with the bank's expectations. HSBC noted that Guangdong Investment's water utility business operates with resilience, maintaining stable performance year-to-date, and sees good momentum in other business segments (property leasing, energy), which is expected to continue in the coming quarters.

HSBC raised its net profit forecast for Guangdong Investment for 2025 to 2027 by 1% to 2%. With HSBC forecasting a 2026 dividend yield of 6.7%, relative to peers ranging from 4% to 7%, and considering the earnings resilience and management's expectation of a payout ratio exceeding 65%, it believes the valuation is attractive, maintaining a "Buy" rating and raising the target price from HKD 7.3 to HKD 7.8