Citi has released a research note stating that CHINA OVS PPT (02669) delivered a mixed set of first-half results. Net profit dipped 9% due to margin pressure and short-term costs tied to strategic repositioning efforts.

The bank believes that ongoing portfolio reshaping and technology integration will help safeguard profit margins, underpinning its projection of stable earnings in the second half of 2026. While the full-year forecast still points to a 5% decline, the bank anticipates a gradual recovery in annual earnings growth of 3% to 5% between 2027 and 2028.

Citi noted that the increase in interim dividends came as a pleasant surprise, translating to a dividend yield of 6.2%. Based on this, the firm reaffirmed its "Buy" rating while lowering the target price from HK$5.2 to HK$4.5.