HSBC Research Maintains Buy Rating on CTF SERVICES; Unexpected Bonus Share Issuance

Written by Emily J. Thompson, Senior Investment Analyst

00659+1.7%

Source: aastocks

Updated: Sep 26 2025

0mins

Source: aastocks

Company Performance: CTF SERVICES reported better-than-expected results for FY25, maintaining a final dividend of HKD0.35 and proposing a bonus share issuance of one bonus share for every ten shares held.
Future Outlook: HSBC Global Research anticipates a 10% YoY increase in dividend distribution for FY26, supported by the company's commitment to a progressive dividend policy, while CLSA has rated the stock as "Outperform" with a target price increase from HKD9.2 to HKD9.60.

00659

$8.39+Infinity%1D

Analyst Views on 00659

Wall Street analysts forecast 00659 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00659 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 8.250

Low

Averages

High

Current: 8.250

Low

Averages

High

CLSA

Outperform

maintain

Al Analysis

2025-12-08

Reason

CLSA

Price Target

Al Analysis

2025-12-08

maintain

Outperform

Reason

The analyst rating for CTF SERVICES (00659.HK) is maintained at "Outperform" due to several key factors. The new free cash flow analysis framework indicates a low risk of dividend cuts, suggesting stability in the company's financial health. Additionally, there is a positive skew in the new dividend forecast, indicating potential for actual dividend increases. The broker, CLSA, believes there is a significant chance for the company to re-enter the Shanghai-/Shenzhen-Hong Kong Stock Connect in 2026, which could enhance valuation recovery. Although CLSA slightly adjusted its earnings forecasts and reduced the target price from $9.6 to $8.8, the overall outlook remains optimistic, supported by a projected dividend yield of 7.5%.

BOCOMI

Buy

maintain

$9.42

2025-09-30

Reason

BOCOMI

Price Target

$9.42

2025-09-30

maintain

Buy

Reason

The analyst rating from BOCOMI for CTF SERVICES is maintained as a "Buy" due to several key reasons: 1. Strong Financial Performance: The company recorded a 7% year-over-year increase in attributable operating profit, surpassing the broker's earlier forecast. The profit attributable to shareholders also increased by 4% year-over-year, and adjusted EBITDA climbed by 1% year-over-year, indicating solid financial health. 2. Growth in Key Segments: The growth in the financial services segment (CTF Life) significantly contributed to the overall performance, offsetting challenges in other divisions. 3. Attractive Dividend Yield: BOCOMI highlighted a dividend yield of over 8%, with projected yields of 8.4% and 8.8% for FY26-27, making the stock appealing for income-focused investors. 4. Valuation: The broker noted that the company's valuation is cheap relative to its attractive dividend returns, further supporting the "Buy" rating. 5. Target Price: The target price for the stock remains at HKD9.42, indicating potential upside from the current trading levels. Overall, these factors contribute to a positive outlook on CTF SERVICES, justifying the "Buy" rating.

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About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

HSBC Research Maintains Buy Rating on CTF SERVICES; Unexpected Bonus Share Issuance

Analyst Views on 00659

About the author

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