花旗认为，美联储减息将触发对电能股份的重新评估，若美国国债收益率下降至3%，电能股价将根据历史上涨13%。该行亦指，电能2024财年18.4倍的市盈率、1.3倍的市账率、5.1%收益率看起来估值仍然不高。Citigroup has increased its net income forecast for Power Assets for the fiscal years 2024 to 2026 by 1.2% to 2%.
According to the Zhitong Finance app, Citigroup released a research report stating that it has reiterated the 'buy' rating for Power Assets (00006) and raised the target price from HKD 60 to HKD 61.
The report stated that the company's net income for the first half of this year basically met the expected increase of 2% year-on-year. The bank said that mergers and acquisitions can increase its additional profits, so it has increased its net income forecast for the fiscal years 2024 to 2026 by 1.2% to 2%. More merger opportunities may result in a possible increase of HKD 0.624 billion or 9.6% in Power Assets' net income in fiscal year 2025.
Citigroup believes that the Fed's interest rate cut will trigger a reevaluation of Power Assets' stocks. If US Treasury yields fall to 3%, Power Assets' stock price will rise by 13% based on historical trends. The bank also pointed out that Power Assets' P/E ratio of 18.4 times and P/B ratio of 1.3 times for fiscal year 2024 and a yield of 5.1% still appear to be undervalued.
