BOCOM INTL: Maintains "buy" rating on XINYI ENERGY (03868) and raises target price to HK$1.17.

BOCOM INTL released a research report stating that it maintains a "buy" rating for XINYI ENERGY (03868) and raises its target price from 1.02 Hong Kong dollars to 1.17 Hong Kong dollars. XINYI ENERGY achieved revenue of 2.44 billion yuan and a net profit of 791 million yuan last year, with year-on-year growth of 7% and a 12% decrease respectively. Excluding a goodwill impairment of 38 million yuan, the core performance exceeded the bank's expectations by about 4%. BOCOM INTL pointed out that the better-than-expected core performance was mainly due to factors such as the decrease in abandonment rate in the second half of the year, which drove electricity sales volume beyond expectations. The new government policies on new energy electricity quantity and price reform are expected to ensure that the company's existing project electricity prices stabilize after a rapid decline, reducing profit uncertainty. Due to the improvement in earnings certainty of the company and the overall market valuation, the bank has raised the valuation benchmark from 8.5 times the 2025 price-earnings ratio to 9.5 times. The company's current dividend yield for 2025 is as high as 7.7%, and the bank believes that its valuation is attractive.