Lyon: Hong Kong conglomerates are expected to be full of catalysts next year, the first choice is Chow Tai Fook Chuang (00659) and Changhe (00001)

The Zhitong Finance App learned that Lyon released a research report saying that for Hong Kong conglomerates, 2026 will still be full of catalysts, and the ones that are expected to have the most catalytic factors will be Chow Tai Fook Chuang (00659), Yihe, and First Taiping (00142). According to the bank, while waiting for a catalyst, investors should be able to obtain ideal returns through dividends. Since the industry's recurrent profit is expected to increase by 5% in 2026, and the weakening dollar creates a smooth trend, the possibility of cutting dividends is low, supporting a 3% year-on-year increase in the industry's dividend amount in 2026.

In terms of stock selection, the bank chose Chow Tai Fook Foundry and Changhe (00001). Because their risk-return is the most attractive, the target prices are HK$8.8 and HK$61, respectively, and both received a “outperforming market” rating. In addition, the bank is also optimistic about First Pacific, Taikoo A (00019) and Yee Wo. The first two target prices are HK$8.2 and HK$74, both of which have received a “outperforming market” rating.