The Zhitong Finance App learned that even if capital expenditure under the SOC (SOC) may be 15% lower than in the past five years, considering that profit growth from 2024 to 28 may slow, it reiterated the “sale” rating of Hong Kong Light (02638), while raising the net profit forecast for 2023 to 2025 by 1.3% to 5.3%; due to reduced future capital expenses under SOC, the target price was lowered from HK$4.6 to HK$4.45.

According to the report, the company's share joint stock position holders should have accounted for 982 million yuan in net profit in the first half of the year, up 9.8% from the previous year, reaching 32.5% of the market's full-year profit estimate, which is higher than the average share of medium-term profit over the past five years. The profit growth is expected to come from a continuously expanding asset base driven by guaranteed returns and improved financial leverage. The bank said that under the expectation that US dollar interest rates will rise, Hong Kong Light's dividend return of about 6.6% this year is not attractive; in the future, it may increase its appeal by increasing allocations.