The Zhitong Finance App learned that Zhongtai International released a research report stating that it reiterated the “buy” rating of Xintian Green Energy (00956), fine-tuned the 2022 shareholders' net profit forecast, and also raised the 2023-24 profit forecast by 5.7%/5.5% to RMB 27.3/3.08 billion, an increase of 19%/13% over the previous year. The target price was raised from HK$5.28 to HK$5.58, corresponding to a 55 per cent increase.

According to the report, the company's wind power generation increased 31.5% year-on-year to 1,513 gigawatt-hours in January 2023, which is equivalent to the bank's annual forecast of 10%. The bank attributed (1) good wind resources; (2) last year's low base. Natural gas sales fell 1.5% year over year to 686 million cubic meters, with wholesale and retail sales (excluding CNG/LNG) falling 1.0% and 2.6%, respectively. The bank believes that the Spring Festival factor mainly affects industrial gas demand.

The bank mentioned that the company's operating performance in 2022 was stable. Even affected by the pandemic, wind power generation and natural gas sales could increase 4.2%/2% year-on-year to 14031 gigawatt-hours/3885 million cubic meters, respectively. As the impact of the epidemic is under control, industrial and commercial activity is expected to resume at an accelerated pace to support energy demand. The company's operating performance is expected to grow at an accelerated pace this year. The bank expects wind power generation to increase 13.6%/8.5% year on year in 2023-24, while natural gas sales will rise 8.2%/7.4% year on year during the same period.