Macquarie released a report to maintain the target price of HK$2.2 for United PV (00686-HK) to outperform the market rating. Macquarie said that United PV is mainly engaged in the investment, development and operation of solar power plants, and its financing and acquisition business model can reduce risk. The biggest difference between United PV and other solar energy developers or independent power plants is that United PV does not need to get involved in location identification, government approval, engineering design, procurement of solar modules or equipment, installation of solar systems, and grid connection, which helps solar energy operators or fund industries reduce risk. United PV only acquires solar power projects that meet the target IRR, which are guaranteed by the seller. Macquarie also said that the development of new PV farms will be another source of growth for United PV's new production capacity in 2016. Currently, the company is mainly expanding the company's PV farm capacity through mergers and acquisitions. The PV farm was officially launched in 2016. Previously, United PV and Guodian Nanrui had reached an agreement to cooperate to develop no less than 1.5 GW power plants within the next three years between 2015 and 2017. Preparations are currently underway in an orderly manner. United PV expects to install 750MW of capacity in 2016. Pricing factors: 1. 12-month target price: HK$2.20 based on the DCF model; 2. Stimulus factors: renewable energy support policies and new project acquisitions.