China's Guangdong Investment plunges to 13-year low as profit, dividend drop

Guangdong Investment

26/03/2024 02:23

** Shares of Guangdong Investment (GDI)  0270.HK  plunge
21.3% to HK$3.66, their lowest since March 2011 
    ** Stock marks the biggest one-day pct drop since January
1999, and is biggest pct loser in utilities index  .HSCIU  and
Hang Seng Composite Index  .HSCI  
    ** The Chinese water distribution-to-property investment
conglomerate says its 2023 net profit down 34.5% YoY to HK$3.12
bln ($398.9 mln) amid write-down of properties under development
and completed properties held for sale 
    ** GDI proposes a final dividend of HK$0.1233 per share, as
compared to final dividend of HK$0.4262 a year ago, making 
total dividend of HK$0.3104 per share for the year, down 49.4%
from the previous year    
    ** Citi, with a "buy" rating on the stock, says GDI's net
profit fall should pose no surprise as a profit warning was
issued in January but dividend per share (DPS) cut was sharper
than expected
    ** We expect GDI's share price to be volatile in response to
the lower than expected DPS and likely lowered payout ratio
ahead - Citi 
    ** Hong Kong index on utilities  .HSCIU  slips 0.7%, while
Hang Seng Composite Index  .HSCI  climbs 0.5% and Hang Seng
Index  .HSI  adds 0.7%
    ** Stock down 34.5% YTD  
  ($1 = 7.8218 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))