The Zhitong Finance App learned that Xiaomo released a research report saying that it maintains the “increase in holdings” rating of Changhe (00001) and believes that it is significantly underestimated by the market. The target price was lowered 18% from HK$84 to HK$69. Based on forecasting a 47% discount on net asset value per share, 1 standard deviation below the average value.

According to the report, the company's net profit growth last year was better than expected. The main challenge was the impact of the telecommunications business and exchange of the three European groups, but the company's positive operating highlights of reduced net debt ratios, potential repurchases, and business integration can still be seen. Furthermore, the company's free cash flow yield reached 10%. Coupled with the current completion of the launch tower sale transaction and the return of capital, it is believed that it will re-activate the repurchase operation and cooperate with the merger of the three UK and Vodafone UK businesses, which will be the main catalyst for stock prices.

The bank pointed out that the company's management is cautious about the outlook, partly based on European business and rising operating costs. Although rising energy and labor costs are putting pressure on profitable stocks, and infrastructure profits are also lagging behind, the bank believes that infrastructure profits will recover this year; Hong Kong and mainland China's ports and retail will also develop positively after the economy restarts.