大行评级|花旗:对龙源电力开启90日下行催化观察 目标价下调至6.2港元

Bank Rating | Citibank: Start a 90-day downward catalytic observation for Longyuan Electric Power and reduce the target price to HK$6.2

Gelonghui Finance ·  Feb 19 22:04

Citi released a research report saying that it has begun a 90-day downward catalytic observation of Longyuan Electric Power, and it is expected that last year's net profit will fall short of market expectations. At the same time, the net profit forecast for last year was lowered by 6.3%, and by 1.4% and 0.9% for this year and next two years, respectively; the target price was lowered from HK$6.5 to HK$6.2, making it a “buy” rating. The bank pointed out that Longyuan Electric Power's stock price drop last year may be due to market concerns about lower electricity prices for new projects and negative free cash flow due to high capital expenditure. However, a reduction in the unit cost of equipment may increase the return on new projects. Although the wind speed was low in January and the year-on-year growth rate of power generation was only 2.1%, the company's price-earnings ratio forecast for this year is 4.7 times, and the market account ratio is 0.5 times, so the valuation is not expensive.

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