Bank of China International believes that in the medium term (next 3 to 12 months), Longyuan Power should have a definite chance of improving its valuation in the short term (within 3 months).
The Zhitong Finance app learned that the Bank of China International released a research report stating that it maintained the “buy” rating of Longyuan Electric Power (00916), with a target price of HK$8.57. The Group's third-quarter profit increased by 21.8% to RMB 1.25 billion, slightly higher than the company's expectations.
According to the report, the general company's views on the acquisition and repurchase of the parent company's assets, and the bank believes that investors' expectations will change. The alpha of H-shares will weaken in the short term due to the repurchase incident. When it comes to the acquisition of parent company assets, there should be a definite opportunity for valuation improvement in the medium term (next 3 to 12 months) compared to the short term (within 3 months).