Lyon Assigns Outperform Rating to CTF Services (00659), Dividend Meets Expectations

Stock News
09/25

Lyon issued a research report stating that CTF Services (00659) recorded an 18% year-on-year increase in recurring profit to HK$1.4 billion for the second half of the fiscal year, driven by higher contributions from the company's strategic investments. The performance exceeded expectations by 19%. The final dividend of HK$0.35 remained flat year-on-year, broadly in line with expectations. The company also proposed a 10-for-1 bonus share distribution. Lyon believes that CTF Services' share price performance has lagged behind its valuation due to ongoing conversions of convertible bonds. The firm maintains an "Outperform" rating with a target price of HK$8.2, expecting a dividend yield of 8.6% for fiscal year 2026.

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