In terms of growth stocks, as grid capital expenditure continues to rise, Xiaomo is optimistic about smart grid companies.
The Zhitong Finance App learned that Xiaomo released a research report saying that lower interest rates and commodity prices will be the main investment focus for mainland China and Hong Kong utility stocks this year. Among the defensive stocks recommended by the bank, Changjiang Infrastructure (01038) shares have a yield of about 6% this year, and will benefit from the stabilization of the US dollar. The rating was upgraded from “neutral” to “increased holdings”, and the target price was raised from HK$40 to HK$50.
The bank expects that Huaneng International Power Co., Ltd. (00902) predicts that the stock yield will reach more than 10%, or benefit from low coal prices and guaranteed income of more than 10 billion yuan in capacity costs. The rating will be upgraded from “neutral” to “increased holdings”, and the target price will be raised from HK$4.1 to HK$5.2. It also maintained the “neutral” rating of Electric Energy Holdings (00006) and raised the target price from HK$40 to HK$50. In terms of growth stocks, as grid capital expenditure continues to rise, the bank is optimistic about smart grid companies. Based on the recent performance and uncertainty of new residential connections, the bank chose a gas utility company.