CITIC SEC: Maintains "buy" rating on XINYI ENERGY (03868) with a target price of HK$1.20.

CITIC SEC released a research report, maintaining a "buy" rating on XINYI ENERGY (03868) with a target price of 1.20 Hong Kong dollars. The company is expected to have a net profit attributable to shareholders of 9.5/10.1/11.2 billion yuan from 2025 to 2027. The company's net profit attributable to shareholders in 2024 was 7.9 billion yuan, a year-on-year decrease of 12.0%, mainly due to the increase in abandoned electricity rate and the expansion of market-driven trading, dragging down the overall electricity price level. In addition, the pre-tax deduction generated by the large-scale dividends of subsidiary companies in the process of RMB loan replacement also hindered performance. Looking forward to 2025, it is expected that factors such as the reduction of financing costs and the elimination of pre-tax deductions will drive performance recovery.