Citibank: Strong interim results for Jiulong Ci Properties (01997), dividend ratio rises to 90%

The Zhitong Finance App learned that Citibank released a research report saying that since its launch in 2017, Jiulongcang Real Estate (01997) has maintained a 65% dividend ratio to support deleveraging. With debt reduction and capital management, net debt is expected to drop to about HK$20 billion by the end of 2026, with a debt ratio of about 11%. Management decided to raise the dividend ratio by 25 percentage points to 90% from 2026, which is a major positive surprise. Citibank maintains its “buy” rating for Jiulongchang Properties, with a target price of HK$31.6, based on a 45% discount on the 2026 net asset value of $57.45 per share.

The bank indicates that the underlying net profit of Jiulong Cang Real Estate rose 6% year on year to HK$3,311 billion in the first half of this year, supported by a 37% decrease in financing costs; operating profit from investment properties fell 2.5% year on year to HK$4.41 billion, with a marginal profit margin of 83.8%. Harbor City's retail tenant sales outperformed the market, and the occupancy rate remained 92%; Times Square's overall revenue fell 12% year over year.