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]

Summary of Conference Call Company or Industry Involved - The document does not specify a particular company or industry as it contains a placeholder indicating to "please wait" Core Points and Arguments - No core points or arguments are available due to the lack of content in the document Other Important but Possibly Overlooked Content - No additional content is present to summarize or analyze The document does not provide any relevant information for analysis or summarization.

Investment Rating - The report maintains a "Buy" rating for China Resources Power (836 HK) with a target price of HKD 27.55, indicating a potential upside of 17.0% from the current price of HKD 23.55 [1][8]. Core Insights - The company's installed capacity mix shows resilience against changes in utilization rates this year, with clear profit growth potential. Despite weak wind speeds and a slight increase in national power rationing, the company's wind and solar generation increased by 8% and 191% year-on-year in the first four months of the year [1]. - The report notes that the company's hydropower utilization recovery is weaker than expected due to regional hydrological conditions affecting projects in Yunnan and Sichuan. The forecast for hydropower utilization hours has been adjusted downwards by 1.6% [1]. - The high proportion of thermal power generation is beneficial, providing resilience to profitability amid declining wind and solar prices. A 1% change in thermal fuel costs is estimated to impact profits by approximately 2% for 2024/25, while a 1% change in wind/solar utilization hours is expected to affect profits by about 1.2% [1]. - The report adjusts the target price upwards to HKD 27.55 based on operational cost adjustments and hydropower utilization hours, while also lowering profit forecasts for 2024/25 by 0.5% and 1.3% respectively [1]. - The company has shown superior return on equity (ROE) compared to peers, contributing to its attractiveness in the market, especially with a focus on dividends [1]. Financial Overview - Revenue is projected to grow from HKD 103,305 million in 2022 to HKD 126,419 million by 2026, with a compound annual growth rate (CAGR) of approximately 7.5% [4]. - Net profit is expected to increase significantly from HKD 7,463 million in 2022 to HKD 23,347 million by 2026, reflecting a CAGR of around 25.5% [4]. - Earnings per share (EPS) is forecasted to rise from HKD 1.46 in 2022 to HKD 4.78 by 2026, indicating strong growth potential [4]. - The company’s dividend yield is projected to increase from 2.5% in 2022 to 8.1% by 2026, enhancing its attractiveness to income-focused investors [4]. Installed Capacity and Generation Forecast - The total installed capacity is expected to grow from 52,581 MW in 2022 to 88,507 MW by 2026, with the share of renewable energy increasing from 32.3% to 58.1% over the same period [5]. - The forecast for electricity sales indicates a significant increase, with total sales expected to rise from 184,604 GWh in 2024 to 250,723 GWh by 2026 [5]. Valuation Summary - The report utilizes a sum-of-the-parts valuation approach, estimating the value of thermal power at HKD 2.97 per share and renewable energy at HKD 24.58 per share, leading to a total valuation of HKD 27.55 per share [6].

Financial Data and Key Metrics Changes - The company expects the annual electricity demand to be between 4500-4600 hours, slightly lower than last year's 4680 hours, indicating a stable demand despite some structural changes in the market [1] - The company reported an improvement in the recovery of government subsidies, with a balance of 18.7 billion RMB in receivables and a recovery of 3.7 billion RMB last year, which is an increase of 1 billion RMB compared to the previous year [4] Business Line Data and Key Metrics Changes - The company noted that the wind power generation in the first four months saw a slight decrease in grid connection prices due to the increase in market-based projects, but the market-based green electricity trading premium remains high [2] - The company has 70% of its renewable energy projects included in the first compliance list, ensuring smooth access to subsidies [4] Market Data and Key Metrics Changes - The company highlighted that the electricity demand remains high, with some industries like real estate declining while others like new energy vehicles and photovoltaic manufacturing are compensating for the demand [1] - The company has not yet experienced significant power restrictions affecting electricity generation, particularly in the eastern, central, and coastal regions [2] Company Strategy and Development Direction - The management aims to maintain a dividend payout ratio of at least 40%, balancing growth, risk, and returns, while also targeting a clean energy ratio of over 50% by the end of the 14th Five-Year Plan [3] - The company is focused on high-quality growth and has been aligning its strategies with the requirements set by the State-owned Assets Supervision and Administration Commission (SASAC) [3] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of electricity demand, particularly as the peak summer season approaches, despite some fluctuations in wind and hydropower generation [1] - The potential introduction of a wind and solar resource tax could increase operational costs and impact investment returns, but there is currently no clear indication of its implementation [2] Other Important Information - The company is actively following up on the second compliance list for subsidies to ensure continued financial support for its projects [4] Q&A Session Summary Question: How does the company view the demand for thermal power for the year? - The company expects thermal power demand to continue growing, with an annual level projected at 4500-4600 hours, slightly lower than last year's 4680 hours [1] Question: What impact has wind power abandonment had in the first quarter? - The company noted a slight decrease in grid connection prices for wind power but highlighted that market-based green electricity trading remains strong [2] Question: Will the proposed wind and solar resource tax affect profitability? - Management acknowledged the rumors but stated that they have not yet encountered such taxes, though implementation would increase operational costs [2] Question: What is the company's dividend policy? - The company aims for a dividend payout ratio of at least 40%, balancing growth and returns while ensuring risk is managed [3] Question: What is the status of government subsidy recoveries? - The company reported an improvement in subsidy recoveries, with a balance of 18.7 billion RMB in receivables and a recovery of 3.7 billion RMB last year [4]

Investment Rating - The report assigns a "Buy" rating for China Resources Power (0836.HK) with a target price of HKD 26.00, indicating a potential upside of 33.61% from the closing price of HKD 19.46 as of May 8, 2024 [4]. Core Insights - The company's profitability has significantly improved, driven by a decrease in fuel costs, with a notable 56.2% year-on-year increase in net profit to HKD 11.003 billion in 2023 [2]. - Renewable energy business has shown strong performance, contributing HKD 9.726 billion to core profits, which is a 12.52% increase from the previous year [2]. - The company plans to accelerate the construction of wind and solar projects, targeting an additional 10 GW of installed capacity in 2024 [2]. Financial Performance Summary - In 2023, the company achieved revenue of HKD 103.334 billion, with a slight increase of 0.03% year-on-year. The revenue from thermal power and renewable energy was HKD 80.053 billion and HKD 23.281 billion, respectively [3]. - The fuel cost decreased by 15.2% to HKD 54.509 billion in 2023, contributing to the overall profit growth [2]. - The company expects revenues for 2024 to reach HKD 109.859 billion, with a projected net profit of HKD 14.676 billion, reflecting a growth rate of 29.51% [3]. Dividend Policy - The company has a dividend payout ratio of 62% for 2023, with a total dividend of HKD 1.415 per share, including a special dividend of HKD 0.5 per share to celebrate its 20th anniversary [2].

Investment Rating - The report assigns a "Buy" rating for China Resources Power (0836.HK) based on its strong governance and better-than-expected performance in 2023 [3]. Core Insights - In 2023, the company achieved a net profit attributable to shareholders of HKD 11 billion, representing a year-on-year increase of 56.24%, positioning it as the leader among state-owned power enterprises in terms of profit size [3]. - The company's total revenue for 2023 was HKD 103.3 billion, a slight increase of 1.17% year-on-year, with a dividend payout ratio of 62% when including a special dividend [3]. - Renewable energy has become the main profit contributor, with core profits from renewable energy reaching HKD 9.726 billion, up 12.5% year-on-year, while thermal power turned profitable with core profits of HKD 3.611 billion [3][4]. Summary by Sections Financial Performance - The company reported a net profit of HKD 11 billion in 2023, a 56.24% increase from 2022, with a total revenue of HKD 103.3 billion [3][5]. - The operating profit margin improved to 17.6% in 2023, with a return on equity (ROE) of 11.73% [5][6]. Cash Flow and Receivables - The company’s net operating cash flow reached HKD 28.87 billion, the highest since 2016, marking a 19.46% increase year-on-year [4]. - Accounts receivable stood at HKD 32.8 billion at the end of 2023, reflecting a significant improvement compared to peers [4]. Future Outlook - The company plans to add 10 GW of new renewable energy capacity in 2024, with a total capital expenditure of HKD 59.9 billion planned for the year [4]. - Profit forecasts for 2024-2026 are projected at HKD 14.22 billion, HKD 16.06 billion, and HKD 18.28 billion respectively, with corresponding price-to-earnings ratios of 6, 5, and 5 times [4][5].