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 report highlights the company's stable dividend policy, strong premium income growth from CTF Life, and improved trading liquidity since joining the Stock Connect. Citi believes the stock's dividend support and growth prospects in the insurance sector mitigate downside risks. Management's capital recycling efforts have generated over HKD300 million in 1HFY2026, with potential future disposals estimated at HKD3 billion to HKD4 billion. The newly acquired logistics properties are expected to enhance operating profit this year.
Citi published a research report initiating coverage on CHOW TAI FOOK CREATION (00659.HK) +0.140 (+1.739%) 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, citing its sustainable and stable dividend policy (FY26 dividend yield of about 7%), strong annual premium income growth driven by CTF Life, and continued positive capital recycling.
Citi noted that since the stock became eligible for the Shanghai-Shenzhen-Hong Kong Stock Connect, its trading liquidity has improved significantly and should attract more investor attention. The broker also believes that dividend support and solid growth prospects in the insurance business can cushion downside risks, making the stock appealing to investors.
The report added that management has continued to execute capital recycling initiatives. Management disclosed that in 1HFY2026, more than HKD300 million was generated from the divestment of non-core assets, with potential future disposals possibly bringing in approximately HKD3 billion to HKD4 billion. Citi expects the companys recently acquired logistics properties to contribute growth to attributable operating profit this year. (hc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-23 16:25.)
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