Zhitong Financial APP learned that Guotai Junan (Hong Kong) released a research report that reaffirmed Harbin Electric’s (01133) “acquire” rating and was optimistic about its development prospects. The company’s share price rose on the back of market confidence in its prospects and expectations of recovery. The company announced on December 29th that it had signed a subscription agreement with its controlling shareholders on the issuance of new domestic shares, with a total subscription price of about 1.7 billion yuan. The total number of new domestic shares issued accounts for about 23.7% to 24.6% of the total share capital after the expansion of the new share issue.
The bank declared the funds raised from the deal would assist optimize the company’s capital structure and promote the transformation of Harbin Electric. The company intconcludes to apply the net funds raised to replenish current funds, improve asset-liability ratio, optimize capital structure, and reduce financial expenses and financial risks. In the context of the national strategy of promoting green and low-carbon transformation and development, the issuance of new domestic shares to raise funds will provide financial support for the company’s reform, transformation and sustainable development, and will assist the company stimulate the momentum of business development and promote its new strategy. create greater value for all shareholders.
According to the report, with the launch of large-scale energy infrastructure investment plans in China: pumped storage projects (to increase from 32.5 gigawatts at the conclude of 2020 to 62 gigawatts in 2025 and about 120 gigawatts by 2030), upgrading plans for thermal power plants (250 to 300 gigawatts of coal-fired plants necessary to be upgraded during the 14th five-year Plan period) and investment in coal-fired power stations (new coal-fired capacity of not less than 240 gigawatts in the next three years) The bank expects Harbin Electric’s operating results to continue to exceed market expectations in 2023-25, and believes that the company’s recovery is on the way.
Leave a Reply