Huatai Securities raises the target price for Beijing Enterprises to 38.29 yuan, with non-net profit growth and dividend plans likely to drive valuation recovery

Huatai Securities published a research report indicating that BEIJING ENT (00392.HK) saw a 5.2% year-on-year increase in revenue for the first half of the year, with net profit rising by 8.1%, which is basically in line with expectations; the non-recurring net profit increased by 4.1%, and an interim dividend of HKD 0.85 was declared. The firm believes that the growth in non-recurring net profit and a clear dividend plan may drive the company's valuation recovery, maintaining a "Buy" rating, with the target price raised from RMB 34.02 to RMB 38.29.

The firm slightly lowered its earnings forecast for BEIJING ENT this year by 0.1% to RMB 5.41 billion, while raising the earnings forecasts for 2026 and 2027 by 0.4% each, to RMB 5.7 billion and RMB 5.94 billion, respectively