Investment Rating - The report maintains a "Buy" rating for China Resources Power (0836.HK) with a target price of 24 HKD, indicating a potential upside of 30% from the current price of 18.52 HKD [1][7]. Core Insights - The report highlights that the company's coal-fired power generation profitability is expected to improve due to declining coal prices, with a significant recovery in core profits for the first half of 2023 [4][8]. - The renewable energy segment faces short-term profitability pressures but maintains a target of 10 GW of new installations for the year [5][9]. - The company is in the process of spinning off its renewable energy segment for A-share listing and has no significant asset impairment issues [6][10]. Financial Summary - Revenue projections show a slight increase from 103,334 million HKD in 2023 to 104,851 million HKD in 2024, reflecting a growth rate of 1.5% [3]. - The net profit attributable to shareholders is expected to rise significantly from 11,003 million HKD in 2023 to 14,378 million HKD in 2024, marking a growth of 30.7% [3]. - Earnings per share (EPS) is projected to increase from 2.29 HKD in 2023 to 2.99 HKD in 2024, with a price-to-earnings (PE) ratio of 6.2 at the current price [3][14]. - The company plans to maintain a dividend payout ratio of 40%, with an interim dividend of 0.455 HKD per share [10][14].

Investment Rating - Maintains an **OUTPERFORM** rating with a target price of **HK$25.55**, representing a potential upside from the current price of **HK$18.52** [3] - The stock is valued at **6x PE** for 2024, reflecting confidence in the company's earnings growth [5] Core Views - **Thermal power profitability** significantly improved in H1 2024, with core profits surging **273.9% YoY** to **HKD 2.715 billion**, driven by lower fuel costs and reduced impairments [4][5] - **Renewable energy business** faced profit pressure, with core profits declining **6.7% YoY** to **HKD 5.556 billion**, despite a **5.8% YoY revenue growth**, due to lower utilization hours and electricity prices [5][12] - The company's **ROE** reached **10.7%**, above the 10-year historical average, supported by strong thermal power performance and reduced impairments [4] Financial Performance - **Revenue** remained stable at **HKD 51.12 billion** in H1 2024, while **net profit** surged **38.9% YoY** to **HKD 9.363 billion**, driven by thermal power profitability [4] - **Thermal power revenue** declined **3.3% YoY** to **HKD 33.6 billion**, but **core profits** surged due to a **10.7% YoY decline in average fuel costs** [5] - **Renewable energy revenue** grew **5.8% YoY** to **HKD 13.152 billion**, but profits were pressured by lower utilization hours and electricity prices [12] Strategic Developments - The company continues to advance its **new energy strategy**, with **24.7GW** of renewable energy capacity, accounting for **39.3%** of total installed capacity [5] - **Wind power** capacity reached **19.12GW**, with sales volume increasing **6.9% YoY**, while **photovoltaic sales volume** surged **204.9% YoY** [12] Valuation and Forecasts - The company is expected to achieve **net profits** of **HKD 14.47 billion**, **HKD 16.504 billion**, and **HKD 18.724 billion** for 2024, 2025, and 2026, respectively, driven by thermal power recovery and new energy contributions [5] - **Diluted EPS** is forecasted to grow from **HKD 3.01** in 2024 to **HKD 3.89** in 2026, reflecting strong earnings growth [4]

Investment Rating - The report maintains a "Buy" rating for China Resources Power (0836.HK) based on its strong performance and governance capabilities [4][5]. Core Views - The company reported a profit attributable to equity holders of HKD 9.363 billion for the first half of 2024, representing a year-on-year increase of 38.91%. The core profit attributable to equity holders was HKD 8.271 billion, up 23.81% year-on-year [4]. - Despite slightly adverse wind conditions affecting renewable energy performance, the stability of renewable energy prices exceeded expectations. The company added 0.50GW of wind power and 1.56GW of photovoltaic capacity in the first half of 2024, with total operational wind power capacity reaching 19.12GW and photovoltaic capacity at 5GW by the end of June 2024 [4][5]. - The coal price decline improved the performance of the coal power segment, with core profit from coal power reaching HKD 2.715 billion, a significant increase of 274% year-on-year, benefiting from the geographical layout of existing coal power units [4][5]. Summary by Sections Financial Performance - The company achieved a total revenue of HKD 103.334 billion in 2024E, with a projected growth rate of 8.87% [7]. - The net profit attributable to equity holders is forecasted to be HKD 14.223 billion in 2024E, reflecting a year-on-year growth of 29.27% [7]. - The average price of wind power (excluding tax) decreased by 1.9% year-on-year, but the price stability was better than the industry average [4]. Capital Expenditure and Growth Plans - The company plans to invest HKD 59.9 billion in capital expenditures in 2024, with HKD 44.6 billion allocated for wind and photovoltaic power station construction, aiming to add a total of 10GW of new renewable energy capacity [5]. Valuation Metrics - The projected price-to-earnings (PE) ratios for 2024-2026 are 7, 6, and 5 times, respectively, indicating a favorable valuation based on the company's strong performance and transition towards cleaner energy [5][7].

Investment Rating - The investment rating for China Resources Power (0836.HK) is "Buy" (maintained) [2] Core Views - The company reported a mid-year profit attributable to equity holders of HKD 9.363 billion, a year-on-year increase of 38.91%, and a core profit of HKD 8.271 billion, up 23.81% year-on-year [2] - Despite slightly adverse wind conditions affecting renewable energy performance, the stability of renewable energy prices exceeded expectations [2] - The company plans to add 10GW of new renewable energy capacity in 2024, with a total capital expenditure of HKD 59.9 billion, of which HKD 44.6 billion is allocated for wind and solar power station construction [3] - The coal power segment's performance improved due to declining coal prices, with core profit for coal power reaching HKD 2.715 billion, a significant increase of 274% year-on-year [2] Summary by Sections Financial Performance - For the first half of 2024, the company achieved a profit attributable to equity holders of HKD 9.363 billion, a 38.91% increase year-on-year, and a core profit of HKD 8.271 billion, up 23.81% year-on-year [2] - The average on-grid electricity price for wind power decreased by 1.9% year-on-year, but the price stability was better than the industry average [2] - The company’s coal power generation increased by 3.4% year-on-year, with the benchmark coal price down by 10.6% [2] Capacity Expansion and Strategy - The company aims to add 10GW of new renewable energy capacity in 2024, continuing its commitment to a cleaner energy transition [3] - The company’s renewable energy segment achieved a core profit of HKD 5.556 billion in the first half of 2024, a decrease of 6.68% year-on-year, but still better than the average performance in the green energy sector [2][3] Earnings Forecast and Valuation - The forecast for net profit attributable to equity holders for 2024-2026 is HKD 14.223 billion, HKD 16.055 billion, and HKD 18.283 billion respectively, with corresponding PE ratios of 7, 6, and 5 times [3][5] - The company’s revenue for 2024 is projected to be HKD 103.334 billion, with a year-on-year growth rate of 8.87% [5]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 24.5, indicating a potential upside of 19% from the current price of HKD 20.6 [3][5]. Core Insights - The company's profitability is gradually improving, with a significant increase in profits from thermal power generation, while renewable energy profits are under pressure due to adverse weather conditions and declining electricity prices [2][3]. - The company plans to accelerate the commissioning of new renewable energy installations, with a target of adding 10 GW of new capacity by the end of the year [2][3]. Financial Performance Summary - For the first half of 2024, the company reported revenue of HKD 51.1 billion, with a net profit of HKD 9.363 billion, reflecting a year-on-year growth of 38.9% [2]. - The thermal power business achieved a profit of HKD 2.7 billion, a substantial increase of 232% year-on-year, driven by a 10.7% decrease in fuel costs [2]. - Renewable energy core business profit decreased by 6.7% to HKD 5.556 billion, impacted by lower wind speeds and electricity prices [2]. - The company’s thermal power sales volume increased by 3.3% year-on-year, and the gross margin for thermal power business improved by 9.6 percentage points [2]. Future Projections - The company expects net profits for 2024, 2025, and 2026 to be HKD 14.782 billion, HKD 16.803 billion, and HKD 18.837 billion respectively, representing year-on-year growth rates of 34%, 14%, and 12% [3][6]. - The projected revenue for 2024 is HKD 106.66 billion, with a slight increase expected in subsequent years [6][7]. Market Position - The company is positioned in a strong market, with most of its power plants located in regions with high electricity demand, which is expected to sustain its profitability [3]. - The company’s governance capabilities are highlighted as a strength, particularly in maintaining leading profitability in the renewable energy sector despite current challenges [3].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Insights - The company's profit attributable to equity holders for the first half of 2024 was HKD 9.363 billion, representing a year-on-year increase of 38.91%. The core profit attributable to equity holders was HKD 8.271 billion, up 23.81% year-on-year [1]. - The company has made significant progress in its clean energy transition, with a total of 0.93 GW of new wind and solar capacity connected to the grid in the first half of the year. As of the end of June, the company had 19.12 GW of operational wind capacity and 5 GW of operational solar capacity [2]. - Despite a 6.2% increase in electricity sales volume to approximately 98.2 billion kWh, the company's revenue slightly decreased by 0.7% year-on-year to HKD 51.12 billion due to a decline in electricity prices [3][4]. Summary by Sections Financial Performance - The company's fuel costs decreased by 11.0% year-on-year to HKD 24.748 billion, influenced by a 10.6% drop in the price of benchmark coal. The core profit contribution from renewable energy was HKD 5.556 billion, down 6.69% year-on-year, while the core profit from thermal power significantly improved to HKD 2.715 billion, corresponding to a profit per kWh of HKD 0.038 [4]. Profit Forecast and Valuation - The company forecasts net profit attributable to shareholders for 2024-2026 to be HKD 15.8 billion, HKD 17.5 billion, and HKD 19.7 billion, respectively, with corresponding price-to-earnings ratios of 6.5, 5.9, and 5.2 times [5].

Investment Rating - Maintain "Buy" rating with a target price of HKD 27.89 per share, implying a 2024 P/E of 9x [2] Core Views - The company's profitability improved significantly in H1 2024, with gross profit up 28% YoY to HKD 10.85 billion and net profit attributable to shareholders up 39% YoY to HKD 9.4 billion [1] - Thermal power segment profitability improved substantially, with segment profit up 231% YoY to HKD 5.1 billion, driven by lower fuel costs [1] - Renewable energy segment maintained high profitability with a 50% profit margin [1] - The company is accelerating its energy transition, targeting 10GW of new wind and solar capacity in 2024 and 16.5GW in 2025 [2] - The company has stable dividend payout, with 2023 dividend of HKD 1.415 per share and 62% payout ratio [1] Financial Performance - H1 2024 revenue was HKD 51.1 billion, down 0.7% YoY, mainly due to lower average on-grid tariffs for thermal power (-3%) and wind power (-1.9%) [1] - Gross margin improved by 4.7/6.9 ppts YoY/QoQ to 21.2% [1] - Net profit margin improved by 5.2/9.5 ppts YoY/QoQ to 18.3% [1] - Thermal power segment margin improved by 9.6 ppts YoY to 13.5% [1] - Forecast 2024-2026 revenue of HKD 107.8/116.5/124.6 billion, with 4.4%/8.0%/6.9% YoY growth [2] - Forecast 2024-2026 net profit of HKD 14.9/16.7/18.6 billion, with 35%/12%/11% YoY growth [2] Capital Expenditure and Energy Transition - 2024 capex guidance of HKD 59.9 billion, with HKD 44.6 billion allocated to wind and solar projects [2] - Target to increase renewable energy capacity to over 50% of total by end-2025 [2] - H1 2024 new grid-connected capacity reached 930MW [2] Valuation - Target market capitalization of HKD 134.2 billion [2] - 2024E P/E of 6.8x, P/B of 1.5x [2] - 2024E ROE of 18.4% [2]

Investment Rating - The report maintains a "Buy" rating for China Resources Power (00836) [4] Core Views - The company reported a revenue of HKD 51.12 billion for the first half of 2024, a slight decrease of 0.71% year-on-year, while the net profit attributable to shareholders reached HKD 9.36 billion, marking a significant increase of 38.9% year-on-year, exceeding expectations [4] - The core profit from thermal power has rebounded, driven by cost optimization, contributing HKD 2.715 billion to core profits, which is 32.8% of the total core profit, an increase of HKD 1.989 billion year-on-year [4] - The company has made significant progress in its renewable energy capacity, with a total installed capacity of 24.125 million kW, accounting for 38.4% of total capacity, and plans to invest HKD 44.6 billion in renewable energy projects in 2024 [5] Summary by Relevant Sections Financial Performance - For the first half of 2024, the total electricity sales volume reached 98.24 billion kWh, a year-on-year increase of 6.2%, with thermal power sales volume at 72.147 billion kWh, up 3.4% [4] - The average coal price decreased by 10.6% year-on-year to RMB 934.6 per ton, while the unit fuel cost also fell by 10.7% to RMB 276.5 per MWh [4] - The company’s revenue projections for 2024-2026 have been revised upwards to HKD 149.18 billion, HKD 173.56 billion, and HKD 215.60 billion respectively, with corresponding PE ratios of 7.4, 6.4, and 5.1 [5][6] Renewable Energy Development - The company added 2.064 million kW of new renewable energy capacity in the first half of 2024, with wind and solar projects contributing 504,000 kW and 1.56 million kW respectively [4] - Despite weaker wind and solar conditions, the average utilization hours for wind and solar power were still above the national industry average by 89 and 79 hours respectively [4] - The company aims to achieve a renewable energy capacity of over 50% by the end of the 14th Five-Year Plan [5]

交银国际研究 公司更新 | --- | --- | --- | |------------|-------------|----------| | 收盘价 | 目标价 | 潜在涨幅 | | 港元 23.00 | 港元 26.83↓ | +16.7% | 华润电力 (836 HK) 上半年火电分部利润超预期，期待新增装机量进度加快 上半年火电超预期表现，但被新能源偏低的利用率有所抵销。上半年核心 盈利同比上升 23.8%，优于我们预期的 10.7%，主要原因是公司火电分部 利润高于我们预期。期内，公司火电/新能源分部纯利同比+75%/-12%，管 理层解释受到利用小时和电价双降的影响，风/光项目的利用小时在上半 年分别同比下降 9.5%/3.7%，上网电价分别下跌 1.9%/11.8%，造成约 9-10 亿港元的利润影响。火电经营方面，上半年燃料成本同比下降 10.7%，点 火价差同比改善 18%至每度电 0.142 人民币。 有计划以收购完成年内新增装机目标，下调利用小时预期。今年上半年， 公司风电和光伏新增并网装机合计约 0.93 吉瓦，相对我们估计全年目标 8 吉瓦仍有一定距离。管理层补充截至 7 月底， ...

Financial Performance - Net profit attributable to shareholders increased by 38.9% to HK$9.36 billion in H1 2024 compared to HK$6.74 billion in H1 2023[1] - Revenue for the six months ended June 30, 2024, was HK$51,119,684 thousand, a slight decrease from HK$51,483,669 thousand in the same period in 2023[10] - Operating profit for the period increased to HK$13,266,437 thousand, up from HK$10,495,310 thousand in 2023[10] - Net profit attributable to the company's owners rose to HK$9,362,748 thousand, compared to HK$6,740,100 thousand in the previous year[10] - The company's revenue for the first half of 2024 was HK$51.12 billion, a decrease of HK$364 million or 0.7% compared to HK$51.48 billion in the first half of 2023[18] - In RMB terms, the company's revenue for the first half of 2024 was RMB46.46 billion, an increase of RMB1.01 billion or 2.2% compared to RMB45.45 billion in the first half of 2023[18] - Operating profit increased by 26.4% to HKD 13.266 billion in H1 2024 from HKD 10.495 billion in H1 2023[25] - Net profit attributable to owners increased by 38.9% to HKD 9.36 billion in the first half of 2024 compared to HKD 6.74 billion in the same period of 2023[33] Renewable Energy and Thermal Power - Renewable energy business contributed HK$5.56 billion to core profit, while thermal power business contributed HK$2.72 billion in H1 2024[1] - Total installed capacity reached 80,314 MW, with renewable energy accounting for 39.3% of the total equity installed capacity[3] - The company aims to add 10,000 MW of wind and solar power capacity in 2024, with a significant portion expected to be connected in the second half of the year[7] - The company's segment profit from thermal power generation was HK$5.13 billion in the first half of 2024, compared to HK$1.55 billion in the first half of 2023[20] - The company's segment profit from renewable energy was HK$6.60 billion in the first half of 2024, compared to HK$6.29 billion in the first half of 2023[20] Capital Expenditure and Investments - Capital expenditure for H1 2024 was HK$20.83 billion, with HK$12.64 billion allocated to wind and solar power projects[6] - Total capital expenditure for 2024 is projected to be HK$59.9 billion, with HK$44.6 billion allocated to wind and solar power projects[9] - The company used HKD 25.578 billion for loan repayments and HKD 17.404 billion for property, plant, and equipment purchases for the six months ended June 30, 2024[39] Electricity Sales and Prices - Electricity sales increased by 6.2% to 98,239,596 MWh in H1 2024, with wind and solar power sales growing by 6.9% and 204.9% respectively[4] - The company's electricity sales volume increased by 6.2% year-on-year, while heat sales volume increased by 7.8% year-on-year[18] - The average on-grid electricity price for coal-fired power plants decreased by 3.0% year-on-year, and the average on-grid electricity price for wind power projects decreased by 1.9% year-on-year[18] Costs and Expenses - Average coal price decreased by 10.6% to RMB 934.6 per ton, and average unit fuel cost decreased by 10.7% to RMB 276.5 per MWh in H1 2024[5] - Total operating costs decreased by 6.3% to HKD 40.266 billion in H1 2024 from HKD 42.977 billion in H1 2023[21] - Fuel costs decreased by 11.0% to HKD 24.748 billion in H1 2024 from HKD 27.796 billion in H1 2023[21] - Depreciation and amortization increased by 10.5% to HKD 8.053 billion in H1 2024 from HKD 7.286 billion in H1 2023[21] - Employee benefits expenses increased by 6.9% to HKD 3.376 billion in H1 2024 from HKD 3.158 billion in H1 2023[21] - Impairment losses decreased significantly to HKD 73 million in H1 2024 from HKD 800 million in H1 2023[22] - Financial expenses decreased by 1.6% to HKD 2.070 billion in H1 2024 from HKD 2.103 billion in H1 2023[26] - Income tax expenses increased by 27.9% to HKD 2.065 billion in H1 2024 from HKD 1.614 billion in H1 2023[30] - Depreciation and amortization expenses rose to HKD 8.05 billion in H1 2024 from HKD 7.29 billion in H1 2023[32] - Government subsidies decreased to HKD 317.36 million in H1 2024 from HKD 427.23 million in H1 2023[32] - Exchange gains decreased to HKD 287.70 million in H1 2024 from HKD 856.01 million in H1 2023[32] Cash Flow and Financial Position - Total assets as of June 30, 2024, stood at HK$346,778,177 thousand, up from HK$322,395,990 thousand at the end of 2023[12] - Cash and cash equivalents increased significantly to HK$9,958,336 thousand from HK$4,082,972 thousand at the end of 2023[12] - Total equity grew to HK$110,616,508 thousand, compared to HK$104,547,141 thousand at the end of 2023[13] - Net cash inflow from operating activities was HK$10,372,544 thousand, up from HK$8,425,849 thousand in 2023[15] - Property, plant, and equipment increased to HK$222,447,199 thousand from HK$215,752,142 thousand at the end of 2023[12] - Total liabilities rose to HK$236,161,669 thousand, compared to HK$217,848,849 thousand at the end of 2023[14] - The company's net cash inflow from financing activities was HK$15.71 billion in the first half of 2024, compared to HK$19.39 billion in the first half of 2023[16] - The company's total cash and cash equivalents at the end of June 2024 were HK$9.96 billion, compared to HK$16.42 billion at the end of June 2023[16] - The company's net current liabilities as of June 30, 2024, were HK$23.75 billion[17] - Cash and cash equivalents as of June 30, 2024, included HKD 48 million, CNY 9.04 billion, BDT 730,600, and USD 469,100[37] - Total bank and other borrowings increased to HKD 182.09 billion as of June 30, 2024, from HKD 158.09 billion as of December 31, 2023[38] - Bank and other borrowings amounted to HKD 4.967 billion, CNY 162.65 billion, and EUR 1.17 million as of June 30, 2024[39] - The net debt to total equity ratio was 156.2% as of June 30, 2024[39] - Total accounts receivable stood at HKD 35.883 billion as of June 30, 2024, with 60 days+ overdue accounting for HKD 24.726 billion[41] - Total accounts payable were HKD 4.808 billion as of June 30, 2024, with 90 days+ overdue accounting for HKD 1.099 billion[42] - The current ratio improved to 0.72x and the quick ratio to 0.65x as of June 30, 2024[42] - EBITDA interest coverage ratio increased to 8.6x as of June 30, 2024[42] - The company's main funding sources included HKD 49.6 billion from borrowings and HKD 10.373 billion from operating cash inflows for the six months ended June 30, 2024[39] Dividends and Shareholder Returns - Basic earnings per share increased to HK$1.95, up from HK$1.40 in the same period in 2023[10] - The company declared an interim dividend of HKD 0.455 per share for 2024, totaling approximately HKD 2.19 billion[34] - The company's capital structure management focuses on optimizing debt and equity to maximize shareholder returns[36] Corporate Governance and Compliance - The company has delivered its financial statements for the year ended December 31, 2023, to the Registrar of Companies in accordance with Section 662(3) and Part 3 of Schedule 6 of the Companies Ordinance[47] - The auditor's report on the financial statements for the year ended December 31, 2023, contains no reservations, no emphasis of matter, and no statements under Sections 406(2), 407(2), or 407(3) of the Companies Ordinance[47] - The company's board of directors includes three executive directors, three non-executive directors, and four independent non-executive directors as of the announcement date[47] Employee and Operational Details - The company employed approximately 20,779 employees as of June 30, 2024[43] - Cash and cash equivalents included HKD 48 million, BDT 730,600, USD 469,100, and a small amount of GBP as of June 30, 2024[43]