The Zhitong Finance App learned that Bank of America Securities released a research report stating that it gave Xinao Energy (02688.HK) a “buy” rating, with a target price of HK$60. It is believed that dividends are expected to be the first to release value. According to the report, although short-term gas costs are still high, it is believed that Xinao Energy's valuation already reflects related challenges, and any geopolitical stability can bring upward risks. According to the bank, Xinao Energy's current price is discounted compared to peers, and the dividend ratio is higher. Considering its lower leverage and stronger free cash flow, this discount is unreasonable. The bank expects the first half of the year's results to confirm a dividend of at least HK$3 per share, thereby driving valuation revaluation and is optimistic about the company's mid-term shareholder returns. However, under the basic scenario, there is an oversupply in the LNG market, and the reduction in natural gas costs will drive the next stage of growth.
Zhitongcaijing·08/04/2026 08:33:20
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The Zhitong Finance App learned that Bank of America Securities released a research report stating that it gave Xinao Energy (02688.HK) a “buy” rating, with a target price of HK$60. It is believed that dividends are expected to be the first to release value. According to the report, although short-term gas costs are still high, it is believed that Xinao Energy's valuation already reflects related challenges, and any geopolitical stability can bring upward risks. According to the bank, Xinao Energy's current price is discounted compared to peers, and the dividend ratio is higher. Considering its lower leverage and stronger free cash flow, this discount is unreasonable. The bank expects the first half of the year's results to confirm a dividend of at least HK$3 per share, thereby driving valuation revaluation and is optimistic about the company's mid-term shareholder returns. However, under the basic scenario, there is an oversupply in the LNG market, and the reduction in natural gas costs will drive the next stage of growth.