Bank of America Securities research report pointed out that it reiterated its "buy" rating on Beijing Ent (00392.HK) because it is expected that the Beijing government will allow the company's gas sales price margin to increase by about 4 fen next year to compensate for half of the investment return and operating costs of the Nangang Liquefied Natural Gas (LNG) receiving station. The bank continued to state that the throughput of the Nangang LNG receiving station will increase from 1.4 million tons this year to 2.2 million tons in 2026. The company has committed to a minimum dividend per share of 1.6 yuan from 2024 to 2026, providing clear guidance. At the same time, the dividend payout ratio is not less than 35%, and the bank believes that the dividend rates for this year and next year are 6.3% and 7% respectively, which are attractive. Additionally, the capital expenditure is expected to decrease from 6.5 billion yuan this year to 3.7 billion yuan in 2026, bringing room for an increase in the dividend payout ratio.

Bank of America Securities stated that due to the decrease in profits from Shenjing Line and Beijing Gas, partially offset by the increase in profits from Beijing Yanjing Brewery, and the core profits affected by LNG, the company's earnings per share forecast for the period from this year to 2026 has been lowered by 4% to 10%, and the target price has been reduced from 32 yuan to 30 yuan. (VC/K)

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