GUANGDONG INV (00270) saw its share price climb 4.09% in morning trading, reaching HK$7.39 with trading volume of HK$136 million.

GUANGDONG INV released its interim results showing continuing operations revenue of HK$9.428 billion, down 0.6% year-on-year, primarily due to declining revenues from department store operations, road and bridge businesses, and power generation operations. The company's attributable profit reached HK$2.682 billion, up 11.2% year-on-year, mainly driven by reduced financial costs and foreign exchange gains from RMB appreciation. Basic earnings per share stood at 41.02 HK cents, with an interim dividend of 26.66 HK cents per share proposed.

Soochow Securities noted that the company's water resources business maintained steady revenue growth, with the Dongjiang-Shenzhen water supply project contributing 68.95% of pre-tax profits. Despite a slight decline in water supply volume, this project achieved growth in both revenue and profit, demonstrating the effectiveness of its market-based pricing adjustment mechanism and strong profitability. Additionally, following the divestiture of Guangdong Investment Properties, the company's debt-to-capital ratio dropped to 24.70%, with financial costs reduced by HK$201 million compared to the same period last year.

The firm stated that the water utilities segment delivers stable performance, and the improved debt profile following the property divestiture ensures stable dividend ratios and strong dividend certainty, maintaining a "buy" rating.