We maintain BUY rating for XYE and tune up TP to HK$3.10 from HK$2.90, representing FY20F PER of 19.7x and dividend yield of 4.8%. We reckon XYE is a good dividend play with stable business outlook. We also consider China authorities’ efforts to address the very lengthy delay in distributing new energy subsidies to operators as a positive driver for XYE’s valuation. Further revaluation relies on the progress of acquiring new solar farms.
Notes: The information above is for reference only. Investment involves risk, please seek for professional advice before making investment decisions.