Citi expects HK Electric's net profit to increase by 1.5% in 2023, but this year it is expected to increase by 2.5% and 2% in 2025.
The Zhitong Finance App learned that Citi released a research report stating that it upgraded the Hong Kong Dense-SS (02638) rating from “sale” to “buy” because the Group's sustainable yield from 2023 to 2025 was 6.7%. On the other hand, the company may be re-rated due to the US dollar interest rate cut in the second half of this year. The bank also believes that HK Electric's ESG will improve due to the continuous increase in the power generation structure using natural gas to replace coal. The bank expects HK Electric's net profit to increase by 1.5% in 2023, and is expected to increase by 2.5% this year, and increase by 2% in 2025. The target price will increase by 21%, from HK$4.45 to HK$5.4.