---
title: "UBS raises XINYI ENERGY's target price to 1.25 yuan with a \"Neutral\" rating"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/272213424.md"
description: "UBS maintains a \"Neutral\" rating on XINYI ENERGY, raising the target price from HKD 1.03 to HKD 1.25, reflecting higher-than-expected dividends in the first half of last year. Financial expenses and tax expenditures have decreased, but the growth rate of production capacity is lower than expected. Earnings forecasts for 2025 to 2027 have been adjusted upward by 9%, 1%, and 1%, with a dividend payout ratio expected to remain between 56% and 59%. The firm believes that XINYI ENERGY's valuation is reasonable, with an average annual compound growth rate of 7%, but it faces downside risks from low electricity prices and slow capacity expansion"
datetime: "2026-01-12T03:23:33.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/272213424.md)
  - [en](https://longbridge.com/en/news/272213424.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/272213424.md)
---

# UBS raises XINYI ENERGY's target price to 1.25 yuan with a "Neutral" rating

UBS research report pointed out that it maintains a "Neutral" rating on XINYI ENERGY (03868.HK), but raises the target price from HKD 1.03 to HKD 1.25 to reflect its higher-than-expected dividend payout in the first half of last year; financial expenses and tax expenditures have decreased, but this is partially offset by the slower-than-expected growth in production capacity. The bank has raised its earnings forecasts for the company for 2025 to 2027 by 9%, 1%, and 1%, respectively, which is generally in line with market expectations. The dividend payout ratio is expected to remain at 56% to 59%, significantly lower than the average level of 88% from 2017 to 2024, reflecting the company's continued adherence to a prudent balance sheet management strategy.

The bank believes that XINYI ENERGY's valuation is reasonable, with an average annual compound growth rate of 7% in earnings from 2025 to 2027, but still sees downside risks from lower electricity prices and potential slow capacity expansion

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