Bank of America Securities: Assigns "Buy" rating to New Energy (02688.HK), with dividends expected to unlock value.

According to the Zhuhai Finance APP, Bank of America Securities released a research report giving New Horizon Energy (02688.HK) a "Buy" rating with a target price of HKD 60, believing that dividends are expected to unlock value first. The report states that while gas costs remain high in the short term, it believes New Horizon Energy's valuation has already reflected the relevant challenges, and any geopolitical stability could pose an upside risk. The firm noted that New Horizon Energy is currently trading at a discount compared to its peers, with a higher dividend yield, and given its lower leverage and stronger free cash flow, this discount is unreasonable. The firm expects that the first half of the year's performance can at least confirm a dividend of HKD 3 per share, which would drive a re-evaluation of its valuation, and is also optimistic about the company's medium-term shareholder returns. In a fundamental scenario, an oversupply in the LNG market and a reduction in gas costs will propel the next phase of growth.