Citigroup has issued a research report, lowering the price target for Beijing Enterprises Holdings Ltd (HKEX: 00392) from HK$35 to HK$29, a reduction of 17%, while maintaining a Neutral investment rating.

The bank noted that within the company's projected 2025 earnings, approximately 39% is expected to be derived from natural gas-related operations, 20% from solid waste treatment, 17% from the beer business, 13% from water services, and 11% from oil.

Following a recent company update, Citigroup has revised down its profit forecasts for 2026-2027 by 3-4%. This adjustment primarily reflects an increased contribution from the beer and oil segments, offset by a decreased contribution from the natural gas and solid waste treatment businesses.

The price target was cut after incorporating these profit revisions and an updated weighted average cost of capital (WACC). The Neutral rating was maintained as the company's projected profit growth, with a compound annual growth rate of +4% from 2025 to 2028, and an anticipated dividend yield of 5.9% for 2026 are not considered particularly high relative to industry peers.