Hong Kong China Travel Maintained At Buy By Citi, Target Raised To HK$1.50

Citi kept Hong Kong China Travel (00308) at Buy and nudged its target price up from HK$1.49 to HK$1.50, according to ETNet. The broker said Hong Kong China Travel's first-half 2026 segment profit of HK$176 million was in line with expectations, while revenue rose 13% year on year to HK$2.06 billion. Net profit came in at HK$112 million, hit by a HK$91 million fair-value loss on investment properties. Interim dividend was 1 HK cent, or a 49% payout ratio, slightly above Citi's 40% forecast. The company said it would keep a relatively high payout ratio even after a spin-off listing and would consider a special dividend if key projects perform strongly. Citi said it expects solid sales growth to continue in the near term, helped by a shift toward monetisation of non-ticket revenue such as experiential accommodation and content-driven products. It added that a spin-off listing could unlock a better valuation.