Morgan Stanley estimates Amoy to cut payouts

Morgan Stanley said Amoy Properties (0101) is likely to change its dividend policy, causing payouts to fall, as it changes its business mix and increases gearing. In a research note to clients, analyst Peter Churchouse, said Amoy would likely follow Hysan Development (0014), which indicated an intention to adjust its dividend policy. Hysan, one of the largest landlords in Causeway Bay, said it would lower its long-term average payout ratio to 50 percent from the traditional 66 percent, meaning it would pay out only half of its net profit to shareholders and would retain the other half in reserves.

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