The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintains the Changhe (00001) “buy” rating, with a target price of HK$70. WinDtre, an Italian subsidiary of the company, plans to transfer wholesale telecommunications assets to a new joint venture to release value and reduce debt ratios. Changhe's shareholding is 40%. The group anticipates that the joint venture will enable the holding company to expand its geographical coverage and possibly acquire other telecom companies as customers in the medium term.

According to the report, the company's stock price has risen 12% since the beginning of the year. The bank believes this is driven by the appreciation of the pound against the US dollar and expectations that the company has announced an asset-light model. Although some investors are concerned that the Group's risk in the telecommunications business has increased over the past few years, this network transaction does not require the Group's capital expenditure and may help the Group further reduce its balance sheet and release valuable assets in its telecommunications business. The bank believes that Changhe's valuation is not high. It predicts a price-earnings ratio of 6.4 times for fiscal year 2023, a 50% discount on net asset value, and a dividend yield of 4.7%.