Core Viewpoint - The report from Guozheng International indicates that in 2024, Xuyang Group (01907) is expected to achieve total revenue of 47.543 billion RMB, a year-on-year increase of 3.2%, with a net profit of 0.02 billion RMB. The firm maintains a "Buy" rating with a target price of 4.2 HKD, highlighting the successful expansion into international markets and the continuous growth of its chemical and management businesses, demonstrating the advantages of its dual strategy in coke and chemicals [1]. Group 1: Coke Business - In 2024, the gross profit margin for coke and coking business is projected to be 8.6%, with a pre-tax profit of 0.87 billion RMB, including a pre-tax profit of 0.23 billion RMB in the second half of the year. The company has successfully launched 3.2 million tons of coke capacity in its Sulawesi production park in Indonesia, with total coke capacity reaching 23.8 million tons. Future projects include an additional 1.6 million tons in Pingxiang, indicating ongoing capacity expansion [2]. - As of March 2025, the coke price is expected to remain around 1,436.54 RMB/ton (excluding tax), with potential for fluctuations if economic stimulus policies are intensified [2]. Group 2: Chemical Business - The chemical business is anticipated to generate revenue of 2.07 billion RMB in 2024, reflecting a 10% increase, driven by a 27,000-ton increase in caprolactam sales and the resumption of production at the Dongming production park. The gross profit margin is expected to remain stable at 7.3%, with a pre-tax profit of 0.55 billion RMB, marking a 21% increase. The total volume of chemical products is projected to reach 5.28 million tons, an 8.8% increase [3]. - Following the commissioning of the caprolactam production line, the company has become the second-largest caprolactam producer globally, with an annual production capacity of 750,000 tons, with plans to expand to 1.5 million tons. The production cost of caprolactam continues to decline [3]. - In the hydrogen energy sector, hydrogen sales are expected to reach 20.1 million cubic meters in 2024, a year-on-year increase of 210%. The hydrogen company is collaborating with Beijing Yihuatong to promote bottle exchange transactions, extending its reach into the fuel cell business [3]. Group 3: Management Business - The management business is projected to generate revenue of 420 million RMB in 2024, a significant increase of 109%, primarily due to the addition of the Jilin aniline project and the Wuzhong coking project, resulting in a pre-tax profit of 0.55 billion RMB, reversing previous losses. The management of coke is expected to reach 5.5 million tons, while the chemical management scale is anticipated to be 960,000 tons [4]. - The ability to achieve profitability even during industry downturns underscores the effectiveness of the dual strategy in coke and chemicals [4].

Core Viewpoint - CITIC Securities maintains a "buy" rating for China Xuyang Group, highlighting its expansion potential in coke, chemicals, and hydrogen energy, with a new EPS forecast of HKD 0.12 for 2027, indicating long-term growth prospects [1] Group 1: Financial Performance - In 2024, the company expects a revenue growth of 3%, with projected operating revenue and net profit attributable to shareholders at CNY 47.5 billion and CNY 0.2 billion respectively, resulting in an EPS of CNY 0.005 [2] - The company plans to distribute a special dividend of CNY 0.022 per share, leading to a total dividend of CNY 0.03 per share, corresponding to a dividend yield of approximately 1.29% based on the closing price on April 7, 2025 [2] - The revenue from the coke and coking products segment is projected to be CNY 176.4 billion in 2024, with costs at CNY 164.4 billion, resulting in a segment gross profit of CNY 15.1 billion [2] Group 2: Coke Production and Expansion - The company is focusing on expanding its coke production capacity through the integration of its facilities in Hohhot and Sulawesi, Indonesia, while exploring potential acquisition projects [2] - The company is constructing a production facility with an annual capacity of 1.8 million tons of coke in the Xiangdong Industrial Park [2] - The company aims to maintain a coal-coke price difference of approximately CNY 320 per ton in 2024 through effective coal blending strategies [2] Group 3: Fine Chemicals Segment - The fine chemicals segment is expected to generate revenue of CNY 207.3 billion in 2024, reflecting an 11.0% year-on-year increase, with costs at CNY 192.1 billion [3] - The gross profit for the fine chemicals segment is projected at CNY 15.2 billion, with a gross margin of 7.3%, remaining stable compared to 2023 [3] - The company has become the second-largest producer of caprolactam globally and the largest producer of methanol from coke oven gas in China [3] Group 4: Hydrogen Energy Expansion - The company plans to acquire a controlling stake in Yihua Tong, investing approximately CNY 550 million, marking a strategic partnership in the hydrogen energy sector [4] - This collaboration aims to enhance the hydrogen energy business, leveraging the company's early investments in high-purity hydrogen and pipeline construction [4] - The partnership is expected to strengthen the overall hydrogen energy industry chain and promote comprehensive upgrades [4]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported a revenue of 47.543 billion yuan for 2024, a year-on-year increase of 2.98%, but a net profit of 0.2 million yuan, reflecting a significant decline of 97.66% [4] - The company's coke business faced challenges due to falling prices, with an average price of 1,847.7 yuan per ton in 2024, down 16.1% year-on-year [4] - The chemical business outperformed the coke segment, with revenue of 20.729 billion yuan, a year-on-year increase of 10.97% [4] - The hydrogen energy segment saw a substantial increase in sales volume, reaching 20.1 million cubic meters, a growth of 212% year-on-year [4] - Future projections indicate a potential rebound in coke prices and an increase in revenue and net profit for the years 2025 to 2027 [4] Financial Summary - The company achieved a total revenue of 47.543 billion yuan in 2024, with projected revenues of 48.323 billion yuan, 50.939 billion yuan, and 53.939 billion yuan for 2025, 2026, and 2027 respectively [5][6] - The net profit is expected to recover to 508 million yuan in 2025, 850 million yuan in 2026, and 915 million yuan in 2027 [5][6] - The gross margin is projected to improve from 7.3% in 2024 to 8.9% by 2027 [6] - The company's total assets are estimated to be 64.620 billion yuan, with a total market capitalization of approximately 11.403 billion Hong Kong dollars [5]

Core Viewpoint - The global economy is facing significant challenges in 2024, but for high-quality companies like China Xuyang Group, these pressures may accelerate self-improvement and evolution, allowing them to capture new business opportunities [1] Business Performance - In a challenging market environment, China Xuyang Group reported a revenue of 47.543 billion yuan for 2024, maintaining stable business growth [2] - The company achieved a net profit of 0.98 billion yuan, successfully holding onto profitability despite industry-wide losses [2] - The resilience of the company's fundamentals is attributed to its focus on traditional competitive advantages while exploring growth potential in the chemical sector and advancing hydrogen energy initiatives [2] Segment Performance - The coking business generated a revenue of 17.642 billion yuan, with an average selling price of 1,847.7 yuan/ton, reflecting a decline compared to the previous year [2] - Despite price fluctuations, the company managed to maintain a coal-coke price difference of over 300 yuan/ton and reduced production costs through internal efficiency improvements [2] - The fine chemicals segment contributed significantly, with revenue reaching 20.729 billion yuan, a year-on-year increase of 11.1% [3] - Solid caprolactam exports surged to 47,500 tons, a 200% increase, while high-value amino alcohol materials began to generate new profit growth [3] Strategic Developments - The operational management service business expanded significantly, with total scale increasing to 8.86 million tons, a 114% year-on-year growth, and revenue reaching 4.225 billion yuan, up 109.5% [3] - The hydrogen energy business also saw substantial growth, with sales reaching 20.1 million cubic meters, making the company the second-largest high-purity hydrogen supplier in China [4] Future Outlook - The company aims to enhance its global competitiveness, with plans for further international expansion and investment in overseas projects [5] - A recent agreement with Beijing Yihua Tong could reshape the hydrogen energy landscape, potentially creating a billion-level ecological closed loop [6] - The company targets an increase in operational management service scale to 18.2 million tons for coking and 1.66 million tons for chemicals in the coming year [7] - Increased interest from southbound funds is noted, with the proportion of shares held rising from 6.78% to around 7% [7]

Financial Performance - For the year ended December 31, 2024, the revenue was RMB 47,542.7 million, an increase of 3.2% compared to RMB 46,065.9 million in the previous year[4]. - The profit attributable to owners of the company for the year was RMB 20.1 million, a significant decrease of 97.7% from RMB 860.8 million in the previous year[4]. - Basic earnings per share for the year were RMB 0.005, down 97.4% from RMB 0.195 in the previous year[4]. - The operating profit for the year was RMB 1,413.9 million, down from RMB 1,807.9 million in the previous year[5]. - Total comprehensive income for the year was RMB 178.1 million, a decrease of 84.2% from RMB 1,122.2 million in the previous year[5]. - The pre-tax profit for 2024 significantly decreased to RMB 109,397,000 from RMB 681,748,000 in 2023, marking a decline of 83.93%[30]. - The company reported a net profit of RMB 97.8 million for the year, a decrease of RMB 891.7 million or 90.1% compared to last year's net profit of RMB 989.5 million[116]. Dividends - The board proposed a special dividend of RMB 0.0222 per share, totaling approximately RMB 96.4 million, subject to shareholder approval[4]. - The company declared an interim dividend of RMB 0.78 per share for 2024, totaling approximately RMB 33,821,000, while the total dividends for 2023 amounted to RMB 256,599,000[40]. - The board does not recommend a final dividend for the year but proposes a special dividend of RMB 0.0222 per share, totaling approximately RMB 96,447,000[145]. - The total dividend per share for the year, including the interim dividend, is RMB 0.03[145]. Assets and Liabilities - Non-current assets increased to RMB 38,738.0 million from RMB 36,702.4 million in the previous year[7]. - Current liabilities rose to RMB 33,796.0 million from RMB 29,955.4 million in the previous year[8]. - The net asset value increased to RMB 15,876.7 million from RMB 14,472.4 million in the previous year[8]. - The total assets as of December 31, 2024, amounted to RMB 59,840,942,000, up from RMB 53,836,249,000 in 2023, indicating an increase of 11.14%[30]. - The total liabilities increased to RMB 43,964,260,000 in 2024 from RMB 39,363,804,000 in 2023, representing an increase of 11.06%[30]. - The company's total liabilities increased to RMB 30,371,910 thousand in 2024, reflecting a significant rise in financial obligations compared to the previous year[59]. Revenue Sources - The group’s revenue sources include coke and coking products, fine chemical products, operational management services, trading, and property sales[18]. - The total external customer contract revenue for the year ended December 31, 2024, was RMB 47,542,739, with sales of coke and coking products contributing RMB 17,642,275[27]. - The fine chemical products manufacturing segment generated revenue of RMB 24,900,660, including RMB 20,729,404 from fine chemical product sales and RMB 4,171,256 from management services[27]. - The revenue from the refined chemical products segment rose by RMB 2,048.5 million or 11.0% to RMB 20,729.4 million, driven by a 27,000-ton increase in caprolactam sales and the resumption of operations at the Dongming production park[100]. - Operating management business revenue surged by RMB 2,208.2 million or 109.5% to RMB 4,225.1 million, primarily due to the new Jilin aniline project established in October 2023[101]. Financial Resources and Obligations - The group has sufficient financial resources to meet all financial obligations due within the next twelve months, assuming a 55% success rate in refinancing bank loans and other financing[10]. - The group applied revised International Financial Reporting Standards (IFRS) effective from January 1, 2024, with no significant impact on current and prior financial positions and performance[11]. - The company has a maximum liability of RMB 5,727.6 million related to guarantees provided for bank financing to joint ventures and associates as of December 31, 2024[139]. Employee and Operational Costs - Employee costs for the year were RMB 1,269.7 million, compared to RMB 1,150.6 million in the previous year[131]. - The company had 7,389 full-time employees as of December 31, 2024, down from 7,601 the previous year[131]. - The sales and distribution expenses increased by RMB 303.9 million or 25.6% to RMB 1,488.9 million, driven by higher transportation costs due to increased business volume[109]. Market and Production Capacity - The company has expanded its annual coke production capacity and is refining high-end chemical products such as CPL and synthetic ammonia[67]. - The company has a total annual production capacity of 3.2 million tons at its Sulawesi production site, with four coke ovens already in operation[67]. - The company plans to expand its annual production capacity of coke to 1.8 million tons at the Pingxiang production site and explore potential acquisition projects domestically and internationally[95]. - The company aims to become the largest global producer of caprolactam (CPL) by enhancing its production capacity, currently being the second largest[95]. Environmental and Technological Initiatives - The company has invested a total of RMB 9.3 billion in environmental protection since its establishment, targeting carbon peak and carbon neutrality by 2030 and 2060 respectively[81]. - The company is committed to reducing environmental impact through resource recycling and reusing valuable by-products from the coking process[92]. - The company is leveraging automation and information technology to enhance its core competitive advantages, integrating MES, ERP, and satellite navigation systems[91]. Shareholder Actions - The company issued 52,000,000 new shares at a placement price of HKD 3.00 per share, raising approximately HKD 156 million (equivalent to RMB 144 million) in December 2024[61]. - The company repurchased a total of 119,085 thousand shares during the year, with a total cost of HKD 355,234 thousand (approximately RMB 323,045 thousand)[61]. - The company plans to resell the treasury shares on the Hong Kong Stock Exchange for cash or use them for an employee share scheme[132].

Investment Rating - The report maintains a "Buy" rating for China Xuyang Group, considering the potential recovery in the coking coal business and the strategic acquisition of Yihuatong [10]. Core Viewpoints - The company plans to acquire a controlling stake in Yihuatong, aiming to enhance its hydrogen energy industry ecosystem. This acquisition is expected to lower the overall cost of fuel cell vehicles and accelerate the commercialization of hydrogen energy [10]. - China Xuyang Group is the largest supplier of high-purity hydrogen in the Beijing-Tianjin-Hebei region, with a production capacity of 34 tons per day and several hydrogen refueling stations, positioning itself for future profit growth in the hydrogen sector [10]. - The coking business, which has faced challenges since 2022, is anticipated to reach a bottom in profitability in the first half of 2024, with potential improvements in the second half due to falling coking coal prices and supportive fiscal policies [10]. Financial Summary - Revenue is projected to grow from 46,066 million RMB in 2023 to 53,353 million RMB by 2026, reflecting a compound annual growth rate [8]. - Net profit is expected to decline significantly in 2024 to 429 million RMB, before recovering to 1,113 million RMB by 2026 [8]. - The price-to-earnings (PE) ratio is forecasted to improve from 23.6 in 2024 to 9.1 by 2026, indicating a potential increase in market valuation [8].

Core Viewpoint - The acquisition of Yihuatong by Xuyang Group represents a significant shift in the hydrogen energy sector, highlighting the challenges and potential collapse of the hydrogen energy bubble, while also signaling a return to rationality in the industry [1][2]. Group 1: Company Performance - Yihuatong reported a revenue of 367 million yuan for 2024, a year-on-year decline of 54.21%, and a net loss of 453 million yuan, marking its fourth consecutive year of losses since its listing on the STAR Market [1][8]. - The company's financial indicators have seen substantial declines, with operating profit, total profit, and net profit attributable to shareholders dropping by 70.85%, 63.16%, and 86.35% respectively compared to the previous year [10]. - Despite a revenue increase from 629 million yuan in 2021 to 801 million yuan in 2023, the losses also grew from 146 million yuan to 243 million yuan, indicating a trend of increasing losses outpacing revenue growth [8][10]. Group 2: Industry Challenges - The hydrogen fuel cell industry is experiencing a downturn, with production and sales of hydrogen fuel cell vehicles in 2024 showing a decline of 10.4% and 12.6% year-on-year, breaking the previous growth trend since 2021 [3][4]. - The industry is facing significant financial pressures, with many companies reporting salary cuts, layoffs, and even bankruptcy, primarily due to difficulties in collecting receivables and a lack of new orders [4][9]. - The reliance on government subsidies and orders has exposed the fragility of the industry, as the market remains underdeveloped and the commercial viability of hydrogen fuel cells is still in its early stages [12]. Group 3: Acquisition Details - Xuyang Group will acquire Yihuatong's controlling stake by exchanging 100% equity of its hydrogen company and 550 million yuan in cash, which is seen as a lifeline for Yihuatong [1][4]. - The acquisition price reflects a significant discount, with shares priced at 18.53 yuan, approximately 23.52% lower than the last trading price of 24.23 yuan [8]. - This merger is viewed as a vertical integration strategy, allowing Yihuatong to cover hydrogen production and refueling, while Xuyang Group enters the fuel cell terminal market, creating a closed-loop ecosystem [4][5].

Investment Rating - The report assigns a "Buy-B" rating to the company, indicating a positive outlook for its stock performance in the coming months [1][9]. Core Insights - The company is positioned as a leading producer and supplier of coke, with plans to expand into new materials and green hydrogen supply, leveraging its existing capabilities and market position [1][9]. - The acquisition of the Xuyang Research Institute for RMB 181 million is expected to enhance the company's operational stability and management efficiency, while also providing potential for capital appreciation through investment properties [2][4]. - The company aims to increase its coke production capacity to 30 million tons annually by 2025, with a current global market share of 1.8% and a domestic share of 2.5% [5][9]. - The chemical and new materials business is expanding, with the company being a major player in various chemical products, including being the largest producer of crude benzene and the second-largest producer of high-temperature coal tar [6][9]. - The hydrogen energy segment is developing a full industry chain, focusing on the Beijing-Tianjin-Hebei region, with plans to enhance hydrogen production and distribution capabilities [8][9]. Summary by Sections Company Overview - The company is a global leader in coke production, with a management capacity of 22 million tons, including self-built and operational management capacities [5]. - The company has a diversified chemical product line and is expanding into new materials, which is expected to drive future growth [6]. Financial Performance - The company reported a revenue of RMB 46.07 billion in 2023, with a projected increase to RMB 49.72 billion in 2024 [11]. - The net profit for 2023 was RMB 860.81 million, with expectations of a decline in 2024 before recovering in subsequent years [11]. - The earnings per share (EPS) are projected to be RMB 0.08 in 2024, increasing to RMB 0.15 by 2026 [9][11]. Market Position and Strategy - The company is strategically positioned to benefit from the recovery of the coke market and the expansion of its new materials and hydrogen energy businesses [9]. - The focus on green hydrogen technology and the establishment of hydrogen production capabilities are expected to align with future clean energy trends [8][9].

Financial Performance - China Risun Group Limited reported significant growth in revenue, achieving a total of RMB 5.2 billion, representing a year-over-year increase of 15%[2]. - The company reported a net income of RMB 800 million, a 12% increase compared to the same period last year[2]. - Revenue for the Reporting Period was RMB 25,208.8 million, reflecting a year-on-year increase of 21.0%[10]. - Profit attributable to owners for the Reporting Period was RMB 111.9 million, a decrease of approximately 84.4% year-on-year[10]. - Basic earnings per share for the Reporting Period was RMB 2.54 cents, down approximately 84.3% year-on-year[10]. - The Group recorded a net profit of RMB 133.5 million for the Reporting Period, representing a decrease of RMB 577.4 million or 81.2% compared to the net profit of RMB 710.9 million for the Last Period[81]. - Total revenue for the Reporting Period increased to RMB 25,208.8 million, up from RMB 20,829.9 million for the Last Period, representing a growth of 20.0%[61]. - The profit for the period included a net transfer to the safety fund of RMB 13,610, contributing to the overall financial stability[162]. Revenue Breakdown - Revenue from the coke and coking chemicals manufacturing business rose by RMB 2,215.8 million or 29.2%, from RMB 7,595.3 million to RMB 9,811.1 million, primarily due to the consolidation of Risun China Gas[61]. - Revenue from the refined chemicals manufacturing business increased by RMB 1,766.4 million or 20.5%, from RMB 8,636.7 million to RMB 10,403.1 million, driven by higher average selling prices and increased sales volumes[62]. - Revenue from operation management services surged by RMB 1,931.6 million or 409.6%, from RMB 471.5 million to RMB 2,403.1 million, mainly due to new projects starting operations[63]. - Revenue from the trading business decreased by RMB 1,693.4 million or 41.0%, from RMB 4,126.4 million to RMB 2,432.8 million, attributed to lower selling prices and reduced business volume[65]. Cost and Profitability - Cost of sales for the Reporting Period increased to RMB 23,354.1 million, up from RMB 19,337.0 million for the Last Period[65]. - Total gross profit increased by RMB 361.6 million or 24.2% to RMB 1,854.6 million for the Reporting Period, with gross profit margin rising from 7.2% to 7.4%[67]. - Gross profit from refined chemicals manufacturing increased by RMB 210.0 million or 31.2% to RMB 883.3 million, with gross profit margin improving from 7.8% to 8.5%[69]. - The average selling price of coke decreased by RMB 322 per ton or 13.6%, from RMB 2,369 per ton to RMB 2,047 per ton during the Reporting Period[61]. Operational Efficiency - Operating profit margin improved to 18%, up from 15% in the previous year, reflecting better cost management and operational efficiency[2]. - The Group maintained three different production chains of refined chemicals, including high-purified hydrogen from coke-oven-gas byproducts[26]. - The Group's focus on operational and management reforms aims to enhance efficiency, profitability, and overall competitiveness by 2025[19]. Strategic Initiatives - The company is investing in new product development, with a budget allocation of RMB 300 million for R&D initiatives in sustainable technologies[2]. - China Risun Group Limited plans to expand its market presence by entering two new provinces in China, aiming for a 20% increase in market share by the end of the next fiscal year[2]. - The company is considering strategic acquisitions to enhance its product portfolio, with potential targets identified in the renewable energy sector[2]. - The Group is exploring trading opportunities in Europe and North America, aiming to establish offices for coke and refined chemicals trading[35]. Sustainability and Environmental Commitment - China Risun Group Limited emphasized its commitment to sustainability, with plans to reduce carbon emissions by 30% over the next five years[2]. - The Group is committed to supporting carbon neutrality policies, focusing on reducing carbon emissions and engaging in green practices[41]. - The Group is advancing digitalization initiatives in the coke and chemical industry, aiming for "green, agglomeration, intelligence, and high-end" development[42]. Financial Position and Liquidity - As of June 30, 2024, bank deposits, restricted bank balances, and cash amounted to approximately RMB 7,475.3 million, an increase of approximately RMB 3,845.4 million or 105.9% compared to RMB 3,629.9 million as of December 31, 2023[52]. - The gearing ratio as of June 30, 2024, was 2.1, up from 1.8 as of December 31, 2023[55]. - The debt to asset ratio as of June 30, 2024, was 75.8%, an increase from 73.1% as of December 31, 2023[55]. - Cash and cash equivalents at the end of the period were RMB 3,636.7 million, up from RMB 2,595.9 million at the end of the last period[90]. Shareholder and Governance Matters - The Group's liquidity is primarily supported by cash flows from operating activities, bank loans, and other borrowings, with potential risks from decreased demand or pricing of products[86][88]. - The Company has adopted all code provisions of the Corporate Governance Code, except for the separation of roles between the chairman and chief executive officer[124]. - The Board currently consists of six executive Directors and two independent non-executive Directors following the resignation of Mr. Kang Woon on July 15, 2024[129]. - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors during the Reporting Period[132].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 4.2, indicating a potential upside of 42% from the current price of HKD 2.96 [4][10]. Core Insights - The company's revenue for the first half of 2024 reached HKD 25.2 billion, representing a 21% increase year-on-year, while net profit significantly declined by 84% to HKD 130 million due to falling coke prices [1][2]. - The coke price has decreased by approximately 16% compared to the same period last year, leading to pressure on profits, although the company's competitive position is strengthening [1][10]. - The chemical business continues to grow, with revenue increasing by 20% to HKD 10.4 billion, driven by higher average selling prices and increased sales volumes of styrene [1][2]. Summary by Sections Financial Performance - In the first half of 2024, the coke and coking business generated revenue of HKD 9.8 billion, up 29%, with a gross margin of 7.5% [1]. - The chemical segment's revenue was HKD 10.4 billion, with a gross margin of 8.5%, reflecting a 12.7% increase in pre-tax profit [1][2]. - The company has adjusted its net profit forecasts for 2024, 2025, and 2026 to HKD 420 million, HKD 820 million, and HKD 1.71 billion, respectively, with corresponding EPS of HKD 0.10, HKD 0.21, and HKD 0.43 [1][3]. Market Conditions - The coke market is currently experiencing a downturn, with weak demand leading to significant price drops, and the overall industry operating rate is declining [1][2]. - The company has successfully launched a 4.8 million-ton coking project in Indonesia, with 3.2 million tons already in production, and is expanding its international market presence [1][2]. Valuation Analysis - The report employs comparable company analysis and DCF methods for valuation, concluding a target price of HKD 4.2 based on a PE multiple of 20x, reflecting the long-term valuation despite current industry challenges [10][12]. - The DCF analysis estimates the company's market value at HKD 19 billion, supporting the target price of HKD 4.3 [10][13].