I'm LongbridgeAI, I can summarize articles.Citi has initiated coverage on Chow Tai Fook Creationwith a Buy rating and a target price of HKD10.6. The positive outlook is based on a sustainable dividend policy, strong operating profit growth from Chow Tai Fook Life, and active capital recycling. The forecast for FY2026 includes a dividend yield of approximately 7% and AOP growth of 17%. Chow Tai Fook has consistently paid dividends since its listing, with a projected dividend per share of HKD0.6 for FY2026. Management is also divesting non-core assets, potentially generating significant future proceeds.
Citi issued a research report initiating coverage on Chow Tai Fook Creation (00659.HK) +0.100 (+1.242%) Short selling $790.31K; Ratio 22.777% with a Buy rating and a target price of HKD10.6. The broker is positive on the company based on: (1) a sustainable and progressive dividend policy (forecast FY2026 dividend yield of approximately 7%); (2) strong attributable operating profit (AOP) growth driven by the life insurance business of Chow Tai Fook Life (forecast +17% for FY2026); and (3) continued active capital recycling.
Citi noted that Chow Tai Fook Creation has paid dividends every year since its listing 23 years ago. Free cash flow analysis shows that the dividend coverage ratio has been significantly above 1x over the past five years and is expected to remain at this level for FY2026 to FY2028. The broker conservatively forecasts a FY2026 dividend per share of HKD0.6, implying an attractive dividend yield of about 7%. Benefiting from robust growth in Hong Kong's life insurance market, together with channel reforms and prudent cost control, Chow Tai Fook Life is expected to deliver mid- to high-teens AOP growth for FY2026 to FY2028. Management has also been actively divesting non-core assets, having received over HKD300 million in 1HFY2026, with potential future disposals possibly generating an additional HKD3 billion to HKD4 billion. (ec/w)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-23 16:25.)
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