BOC International expects the compound earnings per share of Jingneng Clean Energy (00579) to grow 15% between 2023 and 2026.
The Zhitong Finance App learned that BOC International released a research report stating that while maintaining the “buy” rating of Jingneng Clean Energy (00579), the target price was raised by 8.2% from HK$1.94 to HK$2.1. The company's 2024 Scenery Installation Schedule is faster than expected. Currently, 1.69 gigawatts of wind/light are already in trial operation. Management said there is a good chance of officially operating in the 2-3 quarter of this year.
The bank predicts that the Group's operating profit in the gas and electricity sector will drop 29% year on year in 2024, but the official operation of new wind and light installations should be able to offset the decline in profits in this sector. The Group's overall operating profit is still expected to increase by 2% year on year. The Group's current dividend rate of 8.7% is the highest ranking among covered operators. The bank believes that the Group's installed performance is better than expected and should drive a further increase in valuation, and the Group expects a compound increase of 15% in earnings per share between 2023 and 2026.