Gelonghui December 25 | Shenwan Hongyuan published a report covering Xinao Energy for the first time, giving it a “buy” rating, with a target price of HK$69.6. According to the report, based on the long-term improvement of Xinao Energy's natural gas sales business, steady recovery of gross margin, and rapid growth in integrated energy and smart home emerging businesses, the company's net profit from 2023 to 2025 is predicted to be 71.88, 81.67, and 9.336 billion yuan, respectively, with earnings per share of 6.37, 7.24, and 8.28 yuan respectively. Shen Wan Hongyuan believes that in the context of industrial recovery falling short of expectations after the pandemic and declining prosperity in the real estate industry, Xinao Energy has stabilized sales volume and relied on the growth of its high-margin integrated energy business and smart home business to guarantee the company's overall profitability. As the country's natural gas consumption returns to a positive growth trajectory this year, the company's main natural gas sales business is expected to develop steadily over a long period of time.