Daiwa published a report stating that CRYSTAL INTL (02232.HK) will have a mixed performance in the second half of 2025. A key positive factor is that the regular dividend payout ratio has risen to 68%, a record high, and management reiterated that despite the large-scale project in Egypt, the absolute amount of future dividends will not decrease.
However, the firm indicated that the company's revenue and earnings per share for the second half of 2025 are expected to be approximately 5% and 2% lower than market forecasts, respectively. Due to increased global uncertainties, including conflicts in the Middle East, oil price fluctuations, and tariff risks, management has adopted a more conservative stance on revenue and profit margin guidance for 2026.
Daiwa has lowered the target price for CRYSTAL INTL from HKD 9 to HKD 8.8, which corresponds to a forecasted price-to-earnings ratio of 13 times, maintaining a "Buy" rating