HK Stock Market Move | XINYI ENERGY (03868) surged over 9%, core financial report slightly exceeded expectations last year, company's profit uncertainty is expected to decrease.

XINYI ENERGY (03868) surged more than 9%, rising by 9.28% to 1.06 Hong Kong dollars as of the time of writing, with a trading volume of 29.1 million Hong Kong dollars. In terms of news, XINYI ENERGY recently announced its annual performance, with a revenue of 2.44 billion yuan in 2024, an increase of 7% year-on-year; a net profit of 791 million yuan, a decrease of 12% year-on-year; basic earnings per share of 9.55 cents; proposing a final dividend of 2.7 Hong Kong cents per share, compared to 2.6 Hong Kong cents in the same period last year. Along with an interim dividend of 2.3 Hong Kong cents per share, a total of 5 Hong Kong cents will be distributed for the year. BOCOM INTL stated that due to the improved profit certainty of the company and the overall market valuation, the valuation benchmark has been increased from 8.5 times the 2025 P/E ratio to 9.5 times, with the target price raised from 1.02 Hong Kong dollars to 1.17 Hong Kong dollars. The company's dividend yield for 2025 is currently as high as 7.7%, and it is considered attractive in terms of valuation, maintaining a "buy" rating. BOCOM INTL believes that XINYI ENERGY achieved revenue and net profit of 2.44 billion and 791 million yuan respectively last year, with a year-on-year increase of 7% and a decrease of 12%. Excluding a 38 million yuan impairment of goodwill, the core financial reports exceeded the bank's expectations by about 4%, mainly due to factors such as a decrease in abandonment rate in the second half of the year pushing electricity sales volume beyond expectations. The report indicates that the new policies on renewable energy generation and tariff reform by the government are expected to ensure the stability of the company's existing project electricity prices after a rapid decline, reducing profit uncertainty.