According to a research report published by Citigroup, Changhe's performance in the first half of the year was steady. Net profit surged more than 30 times year on year to over HK$26.8 billion. Excluding one-time projects and core profit from the UK telecommunications business, it increased 7% year on year to HK$12.581 billion, reaching about 56% of the bank's profit forecast for the whole year. It believes that Changhe has diversified business advantages in the current difficult business environment. Benefiting from the sale of interest in British Railways and the UK Power Grid by Long Construction, the Group's net debt to net total capital ratio fell to a record low of 8.1% during the period. In July of this year, it completed the sale of 49% of VodafoneThree's equity interest and cashed out £4.3 billion. Citi believes that Changhe's balance ratio can be further reduced. However, I was slightly disappointed with the lack of clear instructions on how to deploy the accumulated cash. NAV continued to maintain a discount of around 49%. As the valuation was extended to 2027, NAV was raised from HK$150.44 to HK$175, while the target price was raised from HK$81.5 to HK$89, maintaining the “buy” rating.

According to a research report published by Citigroup, Changhe's performance in the first half of the year was steady. Net profit surged more than 30 times year on year to over HK$26.8 billion. Excluding one-time projects and core profit from the UK telecommunications business, it increased 7% year on year to HK$12.581 billion, reaching about 56% of the bank's profit forecast for the whole year. It believes that Changhe has diversified business advantages in the current difficult business environment. Benefiting from the sale of interest in British Railways and the UK Power Grid by Long Construction, the Group's net debt to net total capital ratio fell to a record low of 8.1% during the period. In July of this year, it completed the sale of 49% of VodafoneThree's equity interest and cashed out £4.3 billion. Citi believes that Changhe's balance ratio can be further reduced. However, I was slightly disappointed with the lack of clear instructions on how to deploy the accumulated cash. NAV continued to maintain a discount of around 49%. As the valuation was extended to 2027, NAV was raised from HK$150.44 to HK$175, while the target price was raised from HK$81.5 to HK$89, maintaining the “buy” rating.