HK Stock Market Move | XINYI ENERGY (03868) falls nearly 10% after last year's core financial report slightly exceeded expectations. Acquisition plans and uncertainty in solar power prices.

XINYI ENERGY (03868) fell nearly 10%, dropping 8.91% to HK$0.92 as of press time, with a turnover of HK$82.8694 million. On the news front, XINYI ENERGY announced its annual performance, with a revenue of 2.44 billion RMB in 2024, a year-on-year increase of 7%; a net profit of 791 million RMB, a year-on-year decrease of 12%; basic earnings per share was 9.55 cents; it proposes to distribute a final dividend of 2.7 HK cents per share, totaling 5 HK cents for the full year. BOCOM INTL pointed out that excluding the 38 million RMB impairment of goodwill, the company's core financial performance last year was about 4% better than the bank's expectations, mainly driven by factors such as the decrease in abandonment rate in the second half pushing electricity sales volume beyond expectations. China Minsheng Bank released a research report stating that the pace of XINYI ENERGY's acquisitions is affected by the implementation of mechanism electricity prices in various regions. As the company's acquisition prices are linked to P/B or EBITDA with the parent company, the detailed rules of the mechanism electricity price new policy have not yet been introduced, which may affect the calculation of project electricity prices, and the company has not yet clarified the next acquisition plan. Considering the uncertainty of the acquisition plan and photovoltaic electricity prices, the revenue for 2025 was lowered by 20% to 2.394 billion RMB. As the high-interest loan replacement is approaching completion, prepayment of dividends tax and financial costs are expected to be reduced, partially offsetting the impact of the revenue decline. Profit forecast for 2025 was lowered by 4% to 949 million RMB, introducing a profit forecast for 2026 of 1.016 billion RMB.