Investment Rating - The report maintains a "Buy" rating for the company [2][6] Core Views - The company reported a slight increase in revenue for Q1 2024, achieving 9.877 billion yuan, a year-on-year growth of 0.1%, and a net profit attributable to the parent company of 2.393 billion yuan, up 2.47% year-on-year [5] - The company continues to see steady growth in wind and solar installations, with a total installed capacity of 36,155.83 MW, including 27,780.64 MW from wind power and 6,500.19 MW from other renewable sources [5] - The company has a robust resource reserve, having signed development agreements for 54 GW in 2023, with a focus on high-quality resource areas [5] Financial Performance and Forecast - The company expects revenues of 39.88 billion yuan, 43.76 billion yuan, and 47.32 billion yuan for 2024, 2025, and 2026 respectively, with growth rates of 5.9%, 9.7%, and 8.1% [6][8] - The net profit forecast for the same period is 7.791 billion yuan, 8.414 billion yuan, and 9.006 billion yuan, with growth rates of 24.7%, 8.0%, and 7.0% [6][8] - The average utilization hours for wind power decreased by 14 hours year-on-year to 640 hours, while the average utilization hours for thermal power increased by 140 hours to 1,377 hours due to increased electricity demand in Jiangsu [5]

Investment Rating - The report maintains a "Buy" investment rating for Longyuan Power (0916.HK) with a target price of HKD 11, indicating a potential upside of 96.08% from the closing price of HKD 5.58 as of May 2, 2024 [4]. Core Views - Longyuan Power's revenue for Q1 2024 was CNY 9.877 billion, a slight increase of 0.1% year-on-year, with a net profit attributable to shareholders of CNY 2.482 billion, up 2.59% year-on-year [2]. - The company's overall power generation increased by 8.27% year-on-year, reaching 21,225.2 GWh by the end of Q1 2024, driven by an increase in installed capacity [2]. - The report highlights a strategic shift towards larger, more efficient power generation units, which may lead to short-term financial pressures but is expected to enhance operational efficiency in the long run [2]. Financial Performance Summary - Revenue projections for 2024, 2025, and 2026 are CNY 41.01 billion, CNY 45.06 billion, and CNY 50.06 billion respectively, with expected growth rates of 8.96%, 9.88%, and 11.08% [3][8]. - Net profit attributable to shareholders is forecasted to be CNY 8.102 billion in 2024, CNY 9.187 billion in 2025, and CNY 10.254 billion in 2026, reflecting growth rates of 27.49%, 13.39%, and 11.61% respectively [3][8]. - Earnings per share (EPS) are projected to be CNY 0.97, CNY 1.10, and CNY 1.23 for the years 2024, 2025, and 2026, with corresponding price-to-earnings (P/E) ratios of 5.78, 5.11, and 4.58 [3][8]. Operational Insights - The company plans to initiate new renewable energy projects totaling 10 GW in 2024, with 7.5 GW expected to be operational [2]. - As of Q1 2024, Longyuan Power's total installed capacity reached 36.16 GW, a 16.23% increase year-on-year, with significant contributions from wind and solar energy [2]. - The report notes that the company is implementing a "large replaces small" strategy to improve operational efficiency by replacing older, smaller units with larger, modern units [2].

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company's revenue for Q1 2024 reached 9.877 billion yuan, a year-on-year increase of 0.1%, while the net profit attributable to the parent company was 2.393 billion yuan, up 2.47% year-on-year [5][6] - The company's installed capacity increased by 562,200 kW in Q1 2024, reaching a total of 36.1558 million kW, a year-on-year growth of 16.23% [6] - Despite the growth in installed capacity, the average utilization hours for wind power decreased by 14 hours year-on-year to 640 hours due to weak wind conditions, resulting in a modest increase in wind power generation of 1.37% [6] - The company’s gross profit margin was 39.89%, with a slight year-on-year decrease of 0.13%, indicating stable profitability despite challenges [6] Summary by Sections Revenue and Profitability - Q1 2024 revenue was 9.877 billion yuan, a 0.1% increase year-on-year, while net profit was 2.393 billion yuan, reflecting a 2.47% increase [5][6] - The company’s gross profit margin stood at 39.89%, with a minor decline of 0.13% year-on-year, indicating stable performance in cost management [6] Installed Capacity and Generation - The company added 562,200 kW of new installed capacity in Q1 2024, bringing the total to 36.1558 million kW, a 16.23% increase year-on-year [6] - Wind power generation was 17.031 billion kWh, with a year-on-year growth of only 1.37% due to reduced utilization hours [6] Cost Management - The company’s operating costs for Q1 2024 were 5.937 billion yuan, a year-on-year increase of only 0.33%, reflecting effective cost control measures [6] - Management expenses decreased by 3.25% year-on-year to 99 million yuan, while financial expenses increased by 1.64% to 853 million yuan [6] Future Outlook - The company is expected to maintain a positive profit outlook for the year, supported by a robust resource acquisition strategy and significant new energy development indicators [6][7]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 6.92, indicating a potential upside of 22.7% from the current price of HKD 5.64 [1][9]. Core Insights - The company's Q1 profit growth was constrained by lower wind and solar electricity prices, with a year-on-year profit increase of 2%, which is below the 8.2% growth in electricity generation. The decline in electricity prices was estimated at 6% for wind and 26% for solar [1]. - The company added 562 MW of new capacity during the quarter, primarily from acquisitions, with wind and solar contributions of 26 MW and 536 MW, respectively [1]. - The management acknowledged uncertainties regarding the acquisition of parent company assets, including concerns about asset quality and financing conditions. However, the company aims to add 7.5 GW of self-built projects this year, which is expected to drive profit growth beyond 2025 [1][2]. Financial Summary - Revenue for 2023 is projected at RMB 37,638 million, a decrease of 5.6% from 2022, with a recovery expected in 2024 with a 5.1% growth [3]. - Net profit is forecasted to increase from RMB 6,355 million in 2023 to RMB 6,492 million in 2024, reflecting a 2.2% growth [3]. - The company’s earnings per share (EPS) is expected to rise from RMB 0.74 in 2023 to RMB 0.76 in 2024, with a projected dividend payout ratio of 30% [3][10]. Operational Data - The total installed capacity is expected to grow from 35,594 MW in 2023 to 42,594 MW in 2024, with significant contributions from renewable energy sources [7]. - Electricity sales are projected to increase from 76,226 million kWh in 2023 to 86,569 million kWh in 2024, indicating a growth rate of 13.6% [7]. - The company’s financial metrics show a price-to-earnings (P/E) ratio of 7.1 for 2023, which is below the historical average, suggesting potential undervaluation [3][10].

Investment Rating - The report maintains a "Buy" rating for Longyuan Power, with a target price of 21.50 CNY, while the current price is 17.93 CNY [4][9]. Core Views - The company's 1Q24 performance is primarily driven by increased investment income, despite short-term pressure on wind power. The long-term growth potential remains significant due to a rich reserve of renewable energy projects [2][3]. Summary by Sections Financial Performance - In 1Q24, Longyuan Power reported revenue of 9.88 billion CNY, a year-on-year increase of 0.1%, and a net profit attributable to shareholders of 2.39 billion CNY, up 2.5% year-on-year, aligning with expectations [2]. - The company added 562,000 kW of new installed capacity in 1Q24, with wind power and photovoltaic contributions of 260,000 kW and 536,000 kW, respectively. The total power generation reached 21.2 billion kWh, reflecting an 8.3% increase year-on-year [2]. - The gross profit margin for 1Q24 was 39.9%, a slight decrease of 0.1 percentage points year-on-year, while net profit was 2.66 billion CNY, up 1.2% year-on-year [2]. Wind Power Outlook - Wind power generation in 1Q24 was 17 billion kWh, a year-on-year increase of 1.4%. The low growth in wind power generation is attributed to decreased wind speeds, with utilization hours dropping by 14 hours year-on-year to 640 hours [2]. - Wind power revenue for 1Q24 was 7.88 billion CNY, down 4.7% year-on-year, likely due to increased market transaction ratios and declining wind power prices [2]. - The company anticipates improvements in wind power capacity and utilization hours as the "large replaces small" initiative progresses, alongside a substantial project reserve of 54 GW added in 2023 and 23 GW of development indicators obtained [2]. Financial Projections - The report maintains EPS estimates for 2024, 2025, and 2026 at 0.95 CNY, 1.13 CNY, and 1.28 CNY, respectively [2][3]. - Revenue projections for 2024, 2025, and 2026 are 41.609 billion CNY, 46.826 billion CNY, and 50.644 billion CNY, reflecting growth rates of 11%, 13%, and 8%, respectively [3][10]. Valuation Metrics - The report indicates a PE ratio of 18.81 for 2024, decreasing to 14.03 by 2026, suggesting an improving valuation outlook [3][10]. - The company’s net asset return (ROE) is projected to rise from 10.4% in 2024 to 11.6% in 2026, indicating enhanced profitability [3].

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with a target price of 18.81 CNY per share and 8.12 HKD per share respectively [3]. Core Insights - The company achieved a stable operation with a slight increase in profit, reporting a 2.5% year-on-year growth in net profit attributable to shareholders for Q1 2024, amounting to 2.393 billion CNY. Revenue for the same period was 9.877 billion CNY, reflecting a 0.1% increase year-on-year. The growth in demand and expansion of installed capacity contributed to increases in thermal and photovoltaic power generation, with revenues from these segments growing by 3.3% and 146.5% respectively. However, the wind power segment saw a revenue decline of 4.7% due to decreased utilization hours and falling electricity prices [1][2]. - The total power generation for Q1 2024 reached 21.225 billion kWh, marking an 8.3% increase year-on-year. This includes wind power generation of 17.031 billion kWh (up 1.4%) and thermal power generation of 2.581 billion kWh (up 11.3%). The significant increase in renewable energy generation was driven by the addition of 3.46 GW of new photovoltaic capacity [1][2]. - The company has accelerated its installed capacity and is considering asset integration within the group, indicating substantial growth potential. In 2023, the company secured development indicators totaling 22.75 GW, with plans to start 10 GW of new energy installations in 2024 and connect 7.5 GW to the grid [1]. - Profit forecasts suggest that net profit attributable to shareholders will reach 7.860 billion CNY in 2024, 8.866 billion CNY in 2025, and 9.919 billion CNY in 2026, with corresponding P/E ratios of 19.1, 16.9, and 15.1 times. The report emphasizes the accelerated growth in wind and solar installations, leading to a broad growth space for the company [1][2].

Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company is a global leader in clean energy operations, maintaining its position as the world's largest wind power operator since 2015. The controlling shareholder is the State Energy Investment Group, holding a direct stake of 54.9% as of the 2023 annual report [5][6] - As of the end of 2023, the company's installed capacity reached 35.59 million kilowatts, with wind power, thermal power, and other renewable energy sources accounting for 27.75 million, 1.88 million, and 5.96 million kilowatts respectively. The total power generation for 2023 was 76.2 billion kilowatt-hours, representing a year-on-year increase of 7.92% [5][6] - The company achieved revenue of 37.64 billion yuan in 2023, a year-on-year decrease of 5.6%, while the net profit attributable to the parent company was 6.25 billion yuan, a year-on-year increase of 22.3% [5][6] Summary by Sections Project Reserves and Subsidy Returns - The company has a rich reserve of projects and expects to accelerate its self-built capacity. The State Energy Group's new energy installation target for the 14th Five-Year Plan is 70-80 GW, with the company as the main platform for new energy [6] - From 2021 to 2023, the company acquired a total of 59.5 GW of new development indicators, indicating sufficient project reserves. In 2023, the company received 6.42 billion yuan in national subsidies [6] - The company plans to start new energy projects of 10 GW in 2024, aiming to put 7.5 GW into operation [6] Business Integration and Green Energy Value - The company is advancing business integration, with a commitment to inject existing wind power assets and integrate thermal power operations within three years (2022-2024) [6] - As of the first half of 2021, the group had over 20 GW of wind power assets awaiting injection, including approximately 11 GW from the former Shenhua Group [6] - The company’s thermal power assets are relatively small, with a net profit of about 180 million yuan in 2023, indicating that the impact of future integration will be minimal [6] Upgrading Old Units - The renovation of old units is expected to enhance the utilization of quality wind resources and improve project profitability. The company has 6.56 million kilowatts of existing units built before 2010, with potential capacity increases exceeding 9 million kilowatts [6] Earnings Forecast and Valuation - The company’s EPS is projected to be 0.90, 1.03, and 1.19 yuan for 2024-2026. Given the company’s status as a green energy leader and the expectation of asset injections, a valuation premium is warranted, with a target PE of 22-24 times for 2024, corresponding to a reasonable value range of 19.8-21.6 yuan [6][9]

Summary of Longyuan Power's Q1 2024 Earnings Call Company Overview - **Company**: Longyuan Power - **Date of Call**: April 26, 2024 - **Key Focus**: Q1 2024 performance in the renewable energy sector Key Points Industry and Company Performance - **Installed Capacity**: Longyuan Power's renewable energy installed capacity reached 562.16 MW, comprising 26.25 MW from wind and 535.91 MW from solar power [2][3] - **Total Installed Capacity**: As of March 31, total controlled installed capacity was 36.16 GW, a year-on-year increase of 6.07% [2][3] - **Power Generation**: Total power generation was 21.225 billion kWh, up 8.27% year-on-year [2][3] - **Revenue**: Q1 revenue was 9.877 billion yuan, a slight increase of 0.1% year-on-year [2][3] - **Net Profit**: Net profit attributable to equity holders was 2.482 billion yuan, reflecting a year-on-year growth of 2.59% [2][3] Financial Metrics - **Operating Expenses**: Operating expenses remained stable at 60.61 billion yuan [8] - **Financial Costs**: Financial expenses increased to 874 million yuan, a rise of 9.55% year-on-year [8] - **Investment Income**: Investment income turned from a loss of 70 million yuan to a profit of 68 million yuan due to improved profits from joint venture thermal power companies [9] Market Dynamics - **Electricity Pricing**: The average market transaction price for electricity was 0.39 yuan per kWh, showing a decline year-on-year [9][11] - **Market Transaction Volume**: The proportion of market-based transactions increased from 40.8% to 42% [9] - **Limitations on Power Generation**: The average limit on wind power generation was 4.2%, up from the previous year, primarily due to increased installed capacity and low load in some regions [9] Strategic Initiatives - **New Projects**: The company signed agreements for 4.3 GW of wind and solar development and obtained 0.96 GW of new energy development indicators [3][8] - **Market Strategy**: Emphasis on flexible trading strategies to manage electricity price fluctuations and enhance profitability [5][10] - **Green Energy Initiatives**: Plans to develop comprehensive energy bases in the western regions, integrating wind and solar resources to produce methanol [5][6] Challenges and Outlook - **Subsidy Policy**: The company noted that new wind projects have no subsidies since 2021, and existing projects are gradually exiting subsidy periods [13][14] - **Future Capacity**: The company anticipates a peak in project commissioning in Q4 2024, with a focus on maintaining profitability despite subsidy reductions [6][12] - **Digital Transformation**: Efforts to improve operational efficiency through digital transformation and enhanced management practices [15] Shareholder Engagement - **Dividend Policy**: The company increased its dividend payout ratio to 30%, reflecting a commitment to shareholder returns [6][15] - **Stock Buyback**: Discussions on potential stock buybacks pending shareholder approval [6][15] Conclusion Longyuan Power demonstrated steady growth in its renewable energy segment in Q1 2024, despite facing challenges such as increased limit rates and subsidy reductions. The company is strategically positioned to enhance its market presence and profitability through innovative projects and improved operational efficiencies.

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported Q1 2024 results with revenue of 9.877 billion RMB, a year-on-year increase of 0.10%, and a net profit attributable to shareholders of 2.482 billion RMB, up 2.59%, but below expectations [5] - Wind conditions were unfavorable, leading to a decline in wind power revenue, with national wind power utilization hours down by 19 hours year-on-year to 596 hours [5] - The company’s wind power generation increased by only 1.37% year-on-year, with a total generation of 17.030 billion kWh [5] - The company’s thermal power generation increased by 11.30% year-on-year to 2.581 billion kWh, partially offsetting the decline in wind power performance [5] - The company’s investment income improved significantly, turning positive in Q1 2024 with 69 million RMB compared to a loss of 69 million RMB in Q1 2023 [5] - The company’s installed capacity reached 36,155.83 MW as of Q1 2024, with significant growth in renewable energy installations [5] Financial Data and Profit Forecast - The company’s revenue is projected to grow from 39.813 billion RMB in 2024 to 46.264 billion RMB in 2026, with a compound annual growth rate of approximately 9.96% [6] - The net profit attributable to shareholders is expected to increase from 7.635 billion RMB in 2024 to 9.338 billion RMB in 2026, reflecting a growth rate of 22.18% in 2024 [6] - The price-to-earnings ratio is projected to decrease from 6.0 in 2024 to 4.9 in 2026, indicating an attractive valuation [6]

Investment Rating - The investment rating for Longyuan Power (001289.SZ) is "Accumulate" [4][19]. Core Views - The company's revenue remained stable with a slight increase in net profit, driven by a year-on-year growth in power generation [1][5]. - The continuous growth in new energy installed capacity is expected to steadily enhance future performance [1][18]. - The company is actively upgrading its wind farms to improve efficiency and reduce operational issues [19]. Summary by Relevant Sections Financial Performance - In Q1 2024, Longyuan Power achieved a revenue of 9.877 billion yuan (+0.10%) and a net profit of 2.393 billion yuan (+2.47%) [1][5]. - The total power generation for Q1 2024 was 21.225 billion kWh (+8.27%), with wind power generation at 17.031 billion kWh (+1.37%) and thermal power at 2.581 billion kWh (+11.30%) [5][12]. - The average utilization hours for wind power decreased by 14 hours year-on-year to 640 hours, while thermal power increased by 140 hours to 1,377 hours [5][11]. Installed Capacity and Future Growth - As of March 2024, the company had a total installed capacity of 36.16 GW, including 27.78 GW from wind power and 1.88 GW from thermal power [1][18]. - In 2023, the company added 54 GW of new energy resources, with significant contributions from wind and solar projects [1][18]. - For 2024, Longyuan Power plans to start new energy projects totaling 10 GW and expects to put 7.5 GW into operation [1][18]. Profitability and Valuation - The company maintains a stable gross margin of 39.89% and a net margin of 26.93%, with slight year-on-year improvements in net profit margin due to increased investment income [11][12]. - The projected net profits for 2024-2026 are 8.505 billion yuan, 9.550 billion yuan, and 10.609 billion yuan, representing growth rates of 36.1%, 12.3%, and 11.1% respectively [19][21]. - The current price-to-earnings (PE) ratio is projected at 17.8 for 2024, with a target valuation range of 161.6 billion to 170.1 billion yuan, indicating a potential upside of 7%-12% from the current stock price [19][21].