Lyon: Maintaining Chow Tai Fook's (00659) outperforming the market rating and lowering the target price to HK$8.8

The Zhitong Finance App learned that Lyon released a research report saying that the new free cash flow analysis framework shows that whether at the overall level or at the level of each share (after considering 10 free 1 bonus share), the risk of cutting dividends created by Chow Tai Fook (00659) is very low. Therefore, the investment argument for this stock remains unchanged, and it is believed that the company has a considerable chance of re-integrating into the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Exchange in 2026, which will facilitate valuation repair. The bank has factored in the expanded share capital and adjusted the dividend forecast per share to maintain an upward trend in the overall regular dividend. Currently, the risk bias for the new dividend forecast is positive, that is, there is room for an increase in actual dividend payments. The profit forecast was fine-tuned and the target price was lowered from HK$9.6 to HK$8.8. Maintaining an outperforming market rating, with an expected dividend rate of 7.5%.