Reiterating the “buy” rating for Hong Kong's utilities
The Zhitong Finance app learned that UBS released a research report saying that it raised the target price of the Changjiang Infrastructure Group (01038) from HK$44 to HK$48; the target price for the Electric Energy Industry (00006) from HK$47 to HK$51, while also reaffirming the “buy” rating for Hong Kong's utilities, and emphasized that Changjian is one of the top choices.
According to the report, about 40% of Changjian and Electric Power's profits come from the UK. The bank's UK utilities analysts believe that according to documents covering electricity and natural gas published by the UK Gas and Electricity Market Supervisory Authority (OFGEM), there are signs of support for potentially better returns. Among them, the bank is concerned about the work carried out on debt refinancing subsidies and the significance it brings to the overall allowable return.