Financial Performance - The company's turnover for 2023 was HK$103,334,322, a slight increase from HK$103,305,097 in 2022[7]. - Profit attributable to owners of the company for 2023 was HK$11,003,283, representing a significant increase of 56.5% compared to HK$7,042,478 in 2022[7]. - Basic earnings per share attributable to owners of the company rose to HK$2.29 in 2023, up from HK$1.46 in 2022, marking an increase of 56.2%[7]. - The company declared a dividend per share of HK$1.415 for 2023, compared to HK$0.586 in 2022, reflecting a substantial increase[7]. - The total assets of CR Power reached HK$322,395,990 in 2023, up from HK$283,387,646 in 2022, representing a growth of 13.8%[7]. - The Group's profit for the year ended December 31, 2023, is detailed in the consolidated statement of profit or loss on page 149[92]. - The Group's distributable reserves amounted to HK$25,183,277,000 as of December 31, 2023, down from HK$27,561,957,000 in 2022[112]. - The Group's financial statements include detailed notes on borrowings and issued bonds, providing transparency on funding strategies[116][117]. Operational Capacity and Renewable Energy - As of December 31, 2023, CR Power's total attributable operational generation capacity was 59,764 MW, with renewable energy sources (wind, hydro-electric, and photovoltaic) accounting for 22,597 MW, or approximately 37.8% of the total capacity[3]. - The operational generation capacity in Central China increased to 16,635 MW in 2023, up from 15,081 MW in 2022, showing a growth of 10.3%[7]. - The renewable energy attributable operational generation capacity was 22,597 MW, indicating a significant focus on sustainable energy sources[11]. - The company is committed to increasing its renewable energy capacity, as evidenced by the substantial figures in both installed and attributable capacities across various regions[11]. - The company is expanding its distributed photovoltaic projects, with several installations across provinces, contributing to its renewable energy goals[13]. - The company reported a significant increase in new energy development, aligning with the national "double carbon" policy and energy security strategy[21]. - The company achieved a year-on-year reduction of 2.5% in comprehensive energy consumption per ten thousand yuan of output value[38]. Corporate Governance and Leadership - Mr. Song Kui was appointed as Executive Director and Vice Chairman in May 2023, bringing extensive experience from Chongqing Energy Investment Group[51]. - Mr. Zhou Bo joined as a Non-executive Director in October 2023, with over 30 years of experience in finance and corporate management[53]. - The company is focusing on expanding its business units and enhancing corporate governance through the appointment of experienced directors[51][53][55][57][59]. - The company emphasizes the importance of independent directors in its governance structure to ensure accountability and transparency[66]. - The board includes members with experience in public service and advisory roles, which may benefit the company's strategic initiatives[64]. Strategic Initiatives and Future Growth - The company aims to become a world-class clean energy supplier and integrated energy service provider, focusing on enhancing core competitiveness and energy technology innovation[25]. - Future growth strategies include enhancing operational efficiency and increasing the share of renewable energy in the overall energy mix[14][15]. - The company plans to enhance investments in strategic emerging industries focused on clean and efficient power generation, integrated energy services, and energy technology innovation[44]. - The company aims to ensure that the terms of financial assistance are no less favorable than those with independent third parties[179]. Connected Transactions and Financial Agreements - The Group conducted certain connected transactions with connected persons during the year, as required under the Listing Rules[159]. - The annual caps for the Integrated Energy Projects have been revised to RMB 300 million for the financial year ending December 31, 2023, and RMB 400 million for the financial year ending December 31, 2024[168]. - The Company continues to engage in connected transactions with CR entities, reflecting ongoing collaboration in various sectors[176]. - The annual caps for the Financial Assistance Framework Agreement for the three financial years ending December 31, 2025, are RMB900 million, RMB1,900 million, and RMB2,560 million, respectively[182]. Social Responsibility and Environmental Commitment - The company emphasizes the importance of corporate social responsibility, actively participating in disaster relief, student aid, and poverty alleviation initiatives[39]. - The Group is committed to environmental sustainability, focusing on resource conservation and promoting clean energy projects[98]. - The company is committed to green development and has integrated environmental protection concepts into its entire business lifecycle[38]. Market Recognition and Index Inclusion - CR Power has been included in the Hang Seng ESG 50 Index for four consecutive years, highlighting its commitment to sustainable development[4]. - The company was also selected as a constituent of the Hang Seng Index on June 5, 2023, reflecting market recognition of its strategic transformation[4].

Investment Rating - The report maintains an "OUTPERFORM" rating for China Resources Power Holdings [3][12]. Core Views - The thermal power sector has turned profitable, and the contribution from renewable energy is gradually increasing [2][11]. - The company achieved an operating revenue of HKD 103.34 billion in 2023, with a net profit of HKD 11.003 billion, reflecting a year-on-year growth of 56.2% [10][12]. - The report projects net profits for 2024, 2025, and 2026 to be HKD 14.47 billion, HKD 16.50 billion, and HKD 18.72 billion, respectively, with a target price of HKD 25.55 [12]. Financial Summary - The company reported a stable operating revenue of HKD 103.34 billion in 2023, with a year-on-year increase of 4.9% in Chinese yuan terms [10][11]. - The core profit contribution from renewable energy was HKD 9.726 billion, up 12.5%, while the thermal power business contributed HKD 3.611 billion, recovering from a loss of HKD 2.582 billion in 2022 [10][11]. - The average fuel cost for thermal power decreased by 12.6% to CNY 296.3 per megawatt-hour, contributing to the profitability of the thermal power sector [11][12]. Operational Highlights - As of the end of 2023, the installed thermal power capacity was 36.6 GW, accounting for 62.2% of total capacity, with electricity sales from thermal power increasing by 2.3% year-on-year [11]. - The new energy installed capacity reached 22.6 GW, with wind energy contributing 18.62 GW, and electricity sales from new energy increased by 19.26% [11][12]. - The average on-grid electricity price for wind energy in 2023 is expected to be around CNY 462 per megawatt-hour, a decrease of 3.14% year-on-year [11].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 24, indicating a potential upside of 29% from the current price of HKD 18.62 [3][6]. Core Insights - The company's performance in 2023 met expectations, with revenue of HKD 1,033 million, remaining stable year-on-year, and a net profit of HKD 110 million, representing a 56.2% increase. The renewable energy segment contributed HKD 97 million in profit, up 12.5%, while the thermal power segment turned a profit of HKD 36 million, recovering from a loss of HKD 619 million [2][3]. - The report highlights significant improvements in thermal power profitability due to increased coal imports and a substantial drop in coal prices, leading to a 12.6% decrease in fuel costs year-on-year. The introduction of capacity pricing policies in 2024 is expected to further stabilize thermal power profitability [2][3]. - The renewable energy segment is projected to be the main profit contributor, with 5.3 GW of new renewable energy capacity added in 2023 and a target of 10 GW for 2024. The report notes a 12.4% increase in wind power generation and a 111.8% increase in solar power generation, despite a slight decrease in solar utilization hours [2][3]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of HKD 1,033 million, with a net profit of HKD 110 million, marking a 56.2% increase from the previous year. The renewable energy segment's profit was HKD 97 million, while thermal power generated a profit of HKD 36 million [2][4]. - The projected net profits for 2024, 2025, and 2026 are HKD 144 million, HKD 162 million, and HKD 182 million, respectively, reflecting growth rates of 31%, 13%, and 13% [3][4]. Operational Highlights - The company added 5.3 GW of renewable energy capacity in 2023 and has a construction pipeline of 7.3 GW for wind and 6 GW for solar. The capital expenditure for 2024 is planned at HKD 59.9 billion, primarily for renewable energy projects [2][3]. - The report emphasizes the company's strong governance and operational efficiency, which have contributed to its improved financial performance and market position [3][4].

Investment Rating - The investment rating for China Resources Power (836.HK) is positive, suggesting investors should actively consider positioning in the stock [1][2]. Core Insights - China Resources Power reported a significant net profit increase of 56.2% year-on-year, aligning with market expectations. The total revenue remained stable at HKD 103.3 billion, while operating profit rose by 34.3% to HKD 18.2 billion [2]. - The company achieved a turnaround in its thermal power segment, contributing significantly to the overall profit growth. The segment's profit reached HKD 5.47 billion, with a revenue of HKD 80.1 billion [2]. - The company plans to accelerate renewable energy installations, targeting an additional 10GW in 2024 and aiming for a total of 40GW by the end of the 14th Five-Year Plan [1][2]. Financial Performance - In 2023, the company’s earnings per share (EPS) increased by 56.9% to HKD 2.29. The core business profit, excluding asset impairment losses, was HKD 13.3 billion, marking a 120% year-on-year growth [2]. - The company declared a total dividend payout ratio of 62% for its 20th anniversary, with a dividend yield of 7.5% [2]. - The operational installed capacity reached 77.3GW by the end of 2023, with thermal power accounting for 62.2% of the total capacity [2]. Future Outlook - For 2024, the company anticipates further improvement in the profitability of its thermal power segment, with a focus on long-term contracts and market coal procurement strategies [2]. - The capital expenditure for 2024 is projected at HKD 59.9 billion, a 34% increase from the previous year, primarily directed towards renewable energy projects [2]. - The stock is currently valued at a PE ratio of 6.0 times for 2024, with a forecasted net profit of HKD 14.4 billion, indicating potential for price appreciation [2].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][18]. Core Views - The company is positioned as a leading player in the transition from coal to green energy, with a significant focus on renewable energy projects. The company aims to accelerate its renewable energy capacity, targeting 10 GW for 2024, up from 7 GW in 2023 [4][6]. - The company has a robust financial performance, with a notable increase in net profit of 56.2% year-on-year for 2023, reaching 11 billion HKD [2][8]. Summary by Relevant Sections Financial Performance - The company achieved a total revenue of 103.3 billion HKD in 2023, with a slight year-on-year increase of 0.03%. The net profit for the same year was 11 billion HKD, reflecting a year-on-year growth of 56.2% [2][7]. - The projected net profits for 2024, 2025, and 2026 are 14.3 billion HKD, 17.2 billion HKD, and 18.9 billion HKD respectively, indicating a strong growth trajectory [7][14]. Renewable Energy Development - The company has secured renewable energy development indicators for 19.5 million kW, with a focus on wind and solar energy projects. The actual installed capacity for renewable energy in 2023 was 7.68 million kW, exceeding the target of 7 million kW [4][6]. - The renewable energy segment generated a core profit of 9.73 billion HKD in 2023, with a projected increase to 16.5 billion HKD in 2024 [4][6]. Coal Power Operations - The company’s coal power assets are strategically located in economically developed regions, which enhances their operational efficiency. The average coal price in 2023 was 987.5 HKD per ton, down 12.6% year-on-year, which positively impacts profitability [6][12]. - The core profit from the coal power segment was 3.61 billion HKD in 2023, with expectations for further profit increases if coal prices continue to decline [6][12]. Valuation and Market Comparison - The company is valued at a price-to-earnings (P/E) ratio of 6.1 for 2024, with a projected reasonable value range between 20.86 and 26.82 HKD per share [6][13]. - Compared to peers, the company’s valuation metrics indicate a competitive position within the industry, with a P/B ratio of 1.0 [13][14].

Investment Rating - Maintained "Buy" rating with a new target price of HK$20.50, derived from a sum-of-the-parts valuation method (firepower at 0.7x 2024 P/B and renewables at 7.5x 2024 P/E) [1] - 2024 and 2025 EPS forecasts adjusted to HK$2.88 (+3.3%) and HK$3.49 (+1.8%) respectively, with a new 2026 EPS forecast of HK$3.84 [1] Core Views - 2023 performance met expectations with a 56.2% YoY increase in shareholder profit to HK$11.003 billion [1] - Total equity-based operating generation capacity increased by 7,183 MW in 2023, including 3,106 MW from wind and 2,230 MW from solar [1] - Dividend payout ratio remained at 40%, reaching 62% including a special dividend for the 20th IPO anniversary [1] - Firepower business outlook remains stable with a projected 3-5% decline in average fuel cost per unit in 2024, following a 12.6% decline in 2023 to RMB 296/MWh [1] - Ambitious renewable energy expansion plan for 2024, targeting 10 GW of new capacity (up from 5,336 MW in 2023) with a capital expenditure budget of HK$44.6 billion [1] - Low-cost debt financing advantage with an effective interest rate of approximately 2.9% in 2023 [1] Financial Performance - 2023 revenue was HK$103.334 billion, with net profit of HK$11.003 billion, representing a 56.8% YoY increase in EPS to HK$2.29 [4] - 2024 revenue forecast at HK$107.698 billion, with net profit expected to rise to HK$13.837 billion and EPS to HK$2.877 [4] - 2025 revenue forecast at HK$113.202 billion, with net profit expected to reach HK$16.8 billion and EPS to HK$3.492 [4] - 2026 revenue forecast at HK$118.98 billion, with net profit expected to grow to HK$18.493 billion and EPS to HK$3.844 [4] - Operating margin improved to 17.6% in 2023, with a net profit margin of 11.7% [7] - ROE increased to 12.9% in 2023, with further improvements expected to 14.9% in 2024 and 16.3% in 2025 [7] Operational Highlights - Firepower capacity addition planned for 2024 is approximately 927 MW [1] - Renewable energy expansion is supported by strong cash flow from the firepower business and low financing costs [1] - Total assets increased to HK$322.396 billion in 2023, with PPE growing to HK$215.752 billion [7] - Net gearing rose to 182.5% in 2023, with further increases expected to 215.3% in 2024 and 234.3% in 2025 [7] Market Performance - Share price increased by 7.3% over the past month, 15.9% over the past three months, and 13.3% over the past year [3] - Relative performance to the HSI index was 6.6% over the past month, 12.7% over the past three months, and 27.2% over the past year [3] - Average share price over the past year was HK$15.7, with a current share price of HK$17.86 [3]

Investment Rating - The investment rating for China Resources Power (0836.HK) is "Buy" (maintained) [1] Core Views - The company reported a total revenue of HKD 103.3 billion for 2023, a slight increase of 0.03% year-on-year, and a net profit attributable to shareholders of HKD 11 billion, which represents a significant increase of 56.2% year-on-year [2] - The renewable energy segment contributed core profits of HKD 9.73 billion, up from HKD 8.64 billion in 2022, while the thermal power segment turned profitable with core profits of HKD 3.61 billion compared to a loss of HKD 2.58 billion in 2022 [2] - The company achieved a dividend payout ratio of 62% for the year, including special dividends [2] Summary by Sections Financial Performance - The company’s thermal power business sold 149.4 billion kWh, a 2.3% increase year-on-year, with an average utilization of 4,688 hours, remaining stable compared to 2022 [2] - The average benchmark coal price decreased by 12.6% year-on-year to HKD 987.5 per ton, leading to significant cost improvements [2] - The total installed capacity for thermal power at the end of 2023 was 37 GW, accounting for 62.2% of the total capacity, with plans to add 927.2 MW in 2024 [2] Renewable Energy Development - The renewable energy segment accounted for 72.9% of the core profit, with new installations of wind and solar power totaling 3.1 GW and 2.2 GW respectively in 2023 [2] - The company has a target of adding 10 GW of new wind and solar projects in 2024, with significant growth in sales volume for renewable energy, particularly a 12.4% increase in wind and a 111.8% increase in solar sales compared to 2022 [2] Earnings Forecast and Investment Recommendations - The forecast for net profit attributable to shareholders for 2024-2026 is HKD 14.84 billion, HKD 16.51 billion, and HKD 19.46 billion respectively, with corresponding EPS of HKD 3.08, HKD 3.43, and HKD 4.05 [2][3] - The report maintains a "Buy" rating based on the expected growth in profits and the company's strategic focus on renewable energy [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a turnaround in its thermal power segment, leading to a significant increase in net profit by 56% year-on-year in 2023, with a net profit of 9.97 billion RMB [3][4] - The company plans to add 10 GW of new renewable energy capacity in 2024, indicating strong growth potential in the green energy sector [6] Financial Performance - In 2023, the company reported total revenue of 93.6 billion RMB, which remained stable year-on-year, while the net profit attributable to shareholders reached 9.97 billion RMB, up 56% from the previous year [3][4] - The second half of 2023 saw a revenue of 47 billion RMB, a decrease of 2% year-on-year, but net profit increased by 59.5% to 3.86 billion RMB [3] - The company declared a total dividend of 1.415 HKD per share for the year, with a payout ratio of 62% [3] Segment Performance - The thermal power segment turned profitable in 2023, contributing a net profit of 3.27 billion RMB, a significant recovery from a loss of 2.34 billion RMB in 2022 [4][5] - The renewable energy segment also performed well, with a net profit of 8.81 billion RMB, reflecting a year-on-year increase of 12.5% [5] Future Outlook - The company is expected to see further improvement in thermal power performance and growth contributions from renewable energy installations, with projected net profits of 14.4 billion RMB, 16.5 billion RMB, and 18.3 billion RMB for 2024, 2025, and 2026 respectively [6][7] - The projected price-to-earnings (P/E) ratios for the next three years are 5.4, 4.7, and 4.3, indicating attractive valuation levels [6][7]

Investment Rating - The report maintains a "Buy" rating for China Resources Power [1][4][11] Core Views - The company reported a revenue of HK$103.334 billion in 2023, a slight increase of 0.03% year-on-year, and a net profit attributable to shareholders of HK$11.003 billion, reflecting a significant growth of 56.2% year-on-year, which aligns with expectations [3][7][11] - The thermal power sector has shown a major turnaround due to cost reductions, with a notable decrease in fuel costs and an increase in electricity sales volume [3][8] - The company is accelerating its new energy capacity installation, with plans to invest HK$44.6 billion in 2024 to add 10,000 MW of wind and solar projects, aiming for a renewable energy capacity exceeding 50% by the end of the "14th Five-Year Plan" [3][9][10] Financial Performance - In 2023, the company's thermal power electricity sales volume reached 193.27 billion kWh, up 4.7% year-on-year, with a significant improvement in pre-tax profits for the thermal power sector [3][8] - The average unit fuel cost for coal-fired power plants decreased by 12.6% year-on-year, contributing to a reduction in overall fuel costs by HK$9.774 billion [3][8] - The company plans to achieve a net profit of HK$13.225 billion in 2024, with projections of HK$15.530 billion in 2025 and HK$20.350 billion in 2026, reflecting a strong growth trajectory [4][11] Dividend Policy - The company announced a special dividend of HK$0.5 per share, along with an annual dividend of HK$0.915 per share, resulting in a total dividend of HK$1.415 per share for 2023, with a payout ratio of 62% [4][10] - The high dividend yield of 7.89% enhances the investment attractiveness, with expectations of maintaining a high payout ratio in the future [10]

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - In 2023, the company's net profit reached 11.003 billion HKD, a year-on-year increase of 56.2% compared to 7.042 billion HKD in 2022 [5][6]. - The company's thermal power business saw a significant recovery, with a net profit of 2.855 billion HKD, compared to a loss of 3.430 billion HKD in the previous year, driven by a substantial decrease in fuel costs [5][6]. - Renewable energy business profits were impacted by impairment losses, resulting in a net profit of 8.082 billion HKD, a decrease of 4.68% year-on-year [5][6]. Summary by Sections Financial Performance - The company achieved a total net profit of 11.003 billion HKD in 2023, up from 7.042 billion HKD in 2022, marking a growth of 56.2% [5][6]. - The thermal power segment's sales volume was 149.452 billion kWh, a year-on-year increase of 2.28%, while revenue from thermal power sales was 72.226 billion HKD, a decrease of 2.34% [5][6]. - The average unit fuel cost for the company's coal-fired power plants was 296.3 RMB/MWh, down 12.6% year-on-year, contributing to a 15.2% reduction in fuel costs overall [5][6]. Renewable Energy Expansion - The company expanded its installed capacity with 3.11 million kW of new wind power and 2.23 million kW of solar power, leading to a total wind power capacity of 18.618 million kW, a 20.02% increase, and solar capacity of 3.442 million kW, a 183.99% increase [6]. - Wind power sales volume reached 39.612 billion kWh, up 12.36%, while solar power sales volume increased by 111.80% to 2.863 billion kWh [6]. Dividend and Valuation - The company declared a dividend of 1.415 HKD per share for 2023, resulting in a dividend yield of 7.90% based on the closing price on March 20 [6]. - The expected capital expenditure for 2024 is projected to be 59.9 billion HKD, with approximately 46.6 billion HKD allocated for renewable energy projects [6][7].