HK Stock Market Move | XINYI ENERGY (03868) surged 21% at the end of the day, improvement in REIT listing cash flow, planning to acquire power station with sufficient reserves.

XINYI ENERGY (03868) soared 21% in the closing session, rising by 15% at the time of writing to HKD 1.38, with a trading volume of HKD 4.39 billion. On the news front, XINYI ENERGY and XINYI SOLAR recently issued a joint voluntary announcement, suggesting that the application materials for the listing of CECEP Solar Energy power generation field infrastructure REIT in China have been submitted to the NDRC. Guoyuan International pointed out that there is a strong demand in the Chinese REITs market for stable income assets, coupled with support from the "dual carbon" policy. If the selected projects are power plants listed in the subsidy directory, the cash flow certainty is stronger and more attractive to investors. In addition, REIT listings usually require a high dividend payout ratio, which may prompt companies to further increase dividend payouts, potentially leading to an increase in dividend yield in the future. The bank pointed out that the new electricity price policy is expected to ensure stable returns for existing projects, while direct connection of green electricity promotes on-site consumption of new energy. Additionally, in 2024 the company will massively replace HKD loans with lower interest rate RMB loans, with the loan interest rate at the end of 2024 expected to decrease by 2.6 percentage points to 3.5% year-on-year, and it is expected to further decline to 3% in 2025, reducing financing costs continuously. By the end of 2024, the company's cumulative installed capacity reached 4,510.5MW, with XINYI SOLAR holding 1.6GW of power plant reserves available for acquisition by the company.