Investment Rating - The report maintains a "Buy" rating for China Power (2380.HK) with a target price of HKD 4.50, representing a potential upside of 23% from the current price of HKD 3.65 [1][7]. Core Insights - The restructuring of hydropower assets back to A-shares positions Yuanda Environmental Protection as the direct integration platform for State Power Investment Corporation's hydropower assets, enhancing China Power's role as a comprehensive clean energy flagship [5][9]. - The integration of hydropower assets is expected to elevate the overall valuation of both State Power Investment Corporation and China Power, leveraging the high valuation of hydropower assets in the A-share market [6][10]. - The report outlines projected revenue growth, with expected revenues of RMB 51.67 billion in 2024, reflecting a year-on-year increase of 16.7% [8][14]. Summary by Sections Investment Rating - Target Price: HKD 4.50 - Current Price: HKD 3.65 - Expected Increase: 23% [1] Key Financial Data - Total Shares: 12.4 billion - Total Market Capitalization: HKD 45.2 billion - Net Assets: RMB 100,271 million - Total Assets: RMB 325,581 million - 52-week High/Low: HKD 4.51 / HKD 2.58 - Earnings per Share (EPS) for 2024E: RMB 0.22 [2][8] Major Shareholders - China Power International Co., Ltd. (22.91%) - China Power Development Co., Ltd. (21.52%) - China Power (Renewable Energy) Holdings Co., Ltd. (14.85%) [3] Financial Projections - Revenue for 2024E: RMB 51,673 million, with a year-on-year growth of 16.7% - Net Profit for 2024E: RMB 4,944 million, with a year-on-year growth of 85.9% - Projected PE ratios: 10x for 2024 and 8x for 2025 [8][14]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its stock performance [3][6]. Core Insights - The company is initiating a significant asset restructuring, aiming to enhance its position as a clean energy leader by acquiring shares in Yuanda Environmental through its hydroelectric assets [3]. - The restructuring aligns with national policies promoting state-owned enterprise reforms and capital market improvements, capitalizing on a favorable regulatory environment [3]. - Following the restructuring, the company will establish a red-chip structure, with Yuanda Environmental serving as the platform for integrating hydroelectric assets, while the company will operate as a comprehensive clean energy platform [3][4]. - The company’s valuation is currently at a low price-to-book (PB) ratio of 0.76, suggesting potential undervaluation in the market, especially in light of recent capital increases from institutional investors [4][3]. - The earnings forecast for the company remains strong, with projected net profits of 48.1 billion, 56.6 billion, and 64.1 billion RMB for 2024, 2025, and 2026 respectively, corresponding to price-to-earnings (PE) ratios of 10, 8, and 7 [4]. Summary by Sections Company Overview - The company is part of the State Power Investment Corporation and is focused on integrating its coal, hydro, and renewable energy assets to create a leading clean energy platform [3][4]. Financial Data - As of September 30, 2024, the company's closing price is HKD 3.71, with a market capitalization of HKD 459 billion and a PB ratio of 0.76 [2]. - The total assets amount to 325,581 million RMB, with net assets of 100,271 million RMB, translating to a net asset value per share of 4.46 RMB [2]. Earnings Forecast - The company’s total revenue is projected to grow from 44,262 million RMB in 2023 to 58,543 million RMB by 2026, with a compound annual growth rate (CAGR) of approximately 7.2% [5]. - The net profit is expected to increase significantly, with a forecasted growth rate of 80.8% in 2024 compared to 2023 [5].

Investment Rating - The report maintains a "Buy" rating for China Power (2380 HK) with a target price of HKD 4.56, indicating a potential upside of 22.9% from the current price of HKD 3.71 [4]. Core Views - The report highlights the restructuring of hydropower assets to an A-share listing platform, which is expected to enhance valuation. China Power plans to sell its hydropower assets (5.9 GW, approximately 60% stake) to its parent company, Guodian Investment, with the transaction expected to be detailed around October 18 [1][2]. - Management has outlined a preliminary plan to further integrate hydropower assets within three years, aiming to consolidate approximately 20 GW of remaining hydropower assets into the A-share platform [1]. - The transaction is viewed as a strategic move to leverage the higher valuations of hydropower assets in the A-share market, positioning China Power as a comprehensive clean energy flagship platform focusing on hydropower, wind, solar, and high-quality coal power [1][2]. Summary by Sections Hydropower Projects Overview - The report provides a detailed overview of China Power's hydropower projects, listing capacities and valuations in millions of RMB. The total capacity of the listed projects is 5,921 MW, with individual project valuations ranging from 59.9 million to 64.9 million RMB [2]. Valuation Metrics - The report outlines the valuation benchmarks for different segments of China Power's business, indicating a valuation of 0.75x the 2025 estimated price-to-book ratio for the hydropower segment. This is significantly lower than the approximately 3x price-to-book ratio of comparable companies [3]. - The report suggests that the hydropower segment's valuation could potentially increase to 1.5x or higher, which would enhance the overall valuation by approximately HKD 0.4-0.5 per share [1][3].

Investment Rating - The report maintains a "Buy" rating for China Power (2380.HK) and raises the target price to HKD 4.50, indicating a potential upside of 26% from the current price of HKD 3.58 [1][7]. Core Insights - The report highlights strong growth in wind and solar electricity sales, with total sales for the first eight months of 2024 reaching 87,773,648 MWh, a year-on-year increase of 31.24%. Wind and solar sales grew by 70.22% and 78.13% respectively [4][9]. - The thermal power segment also showed positive growth in August, benefiting from declining coal prices, with net profit for thermal power reaching RMB 1.108 billion, a year-on-year increase of 97.23% [5][10]. - Hydropower generation is expected to grow by approximately 80% for the full year, despite a slight decline in August sales [6][11]. - The report projects significant profit growth for the company, with net profit expected to reach RMB 4.944 billion in 2024, reflecting an 85.9% year-on-year increase [8][15]. Summary by Sections Financial Performance - For 2024, the company is projected to achieve revenues of RMB 51.673 billion, a 16.7% increase from the previous year, and net profit of RMB 4.944 billion, an 85.9% increase [8][15]. - The report indicates an EBITDA margin improvement, with expectations of 39% in 2024 [15]. Shareholder Information - Major shareholders include China Power International Co., Ltd. (22.91%), China Power Development Co., Ltd. (21.52%), and China Power (Renewable Energy) Holdings Ltd. (14.85%) [3]. Market Position - The company is positioned favorably within the industry, with a current market capitalization of HKD 443 billion and a total share capital of 12.4 billion shares [2][4].

中國電力國際發展有限公司 China Power International Development Limited (在香港註冊成立的有限責任公司) (股份代號：2380) 低 碳 賦 能 美 好 生 活 5 8 8 6天 股東及投資者參考資料 上市資料 中國電力股份： 中期報告 二零二四年中期報告將於二零二四年九月二十三日 或之前發送予選擇收取公司通訊印刷本的本公司股東。 註冊辦事處及香港主要營業地點 香港灣仔 港灣道18號 中環廣場63層6301室 電話：(852) 2802 3861 傳真：(852) 2802 3922 網址：www.chinapower.hk 股份過戶及登記處 香港中央證券登記有限公司 香港灣仔 皇后大道東183號 合和中心17樓1712-1716號舖 電話：(852) 2862 8628 傳真：(852) 2865 0990 股東及投資者查詢 股東 投資者 • 於香港聯交所上市（股份代號：2380╱ 彭博：2380: HK╱路透社：2380.HK）；及 • 合資格經滬港通及深港通進行港股通交易。 • 熱線： (852) 2862 8555 • 電郵： chinapower.eco ...

Investment Rating - The report does not specify a clear investment rating for the company [4]. Core Insights - The company reported a significant increase in mid-year performance for 2024, with a revenue growth of 24.2% to RMB 26.47 billion and a net profit increase of 53.0% to RMB 2.57 billion [2][3]. - The company declared a special dividend of RMB 0.05 per share to celebrate its 20th anniversary [1][2]. - The clean energy segment continues to be a major driver of profit growth, with wind and solar profits increasing by 35% and 46% respectively [2]. - The company aims to increase its clean energy capacity to over 78% by the end of 2024, with a target of 90% by the end of the 14th Five-Year Plan [1][2]. Summary by Sections Financial Performance - The company achieved a significant operating profit growth of 66.7% to RMB 7.47 billion in the first half of 2024 [2]. - The hydropower segment turned profitable with a profit increase of 622%, driven by improved rainfall and operational efficiency [2][3]. - The thermal power segment saw a profit increase of 97% due to a decrease in coal procurement prices, with average fuel costs down by 8% [3]. Clean Energy Development - The company added 3.3 GW of self-built wind and solar capacity in the first half of 2024, bringing the total clean energy capacity to 77% of its total installed capacity [2]. - The company plans to add an additional 7 GW of clean energy capacity by the end of 2024 [1][2]. Shareholder Returns - The company maintains a dividend payout ratio of over 50%, with an expected annual dividend yield exceeding 7% [2][3]. - The special dividend of RMB 0.05 per share is part of the company's commitment to shareholder returns [1][2].

Investment Rating - The report maintains an "Outperform" rating for the company [4] Core Views - The company has shown comprehensive performance recovery, with a special dividend of 0.05 CNY per share, totaling 620 million CNY, marking its 20th anniversary [4] - The company reported a revenue of 26.47 billion CNY for the first half of 2024, a year-on-year increase of 24.2%, and a net profit of 4.59 billion CNY, up 80.1% year-on-year [4] - The hydropower segment achieved a net profit of 770 million CNY in 24H1, with a significant increase in electricity sales volume by 90% year-on-year [4] Summary by Sections Hydropower - In 24H1, the hydropower segment recorded a net profit of 770 million CNY, with a profit per kWh of 0.072 CNY, compared to a loss of 150 million CNY in 23H1 [4] - The increase in profit is attributed to improved water inflow, with utilization hours rising by 775 hours year-on-year to 1821 hours [4] Thermal Power - The thermal power segment achieved a net profit of 1.11 billion CNY in 24H1, with a profit per kWh of 0.039 CNY, compared to 560 million CNY in 23H1 [4] - The decrease in fuel costs contributed to the performance, with unit fuel costs dropping to 0.274 CNY per kWh from 0.298 CNY per kWh in 23H1 [4] Renewable Energy - The wind power segment reported a net profit of 1.96 billion CNY in 24H1, with a profit per kWh of 0.149 CNY, while the solar power segment achieved a net profit of 1.14 billion CNY [4] - The sales volume for wind and solar power increased by 57.5% and 96.7% year-on-year, respectively [4] Earnings Forecast and Valuation - The company is expected to achieve a net profit of 5.12 billion CNY in 2024, with earnings per share projected at 0.41 CNY [4] - The report suggests a valuation premium due to the recovery in thermal power profitability and quality asset injections, with a target price range of 4.05 to 4.96 HKD based on a PE ratio of 9-11 for 2024 [4]

Investment Rating - The report maintains a **Buy** rating for China Power (2380 HK) with a target price of HKD 4.56, implying a potential upside of 27.4% from the current price of HKD 3.58 [1][2] Core Views - **Strong H2 Profit Growth**: The company is expected to deliver robust profit growth in the second half of the year, driven by significant improvements in the hydro power segment and a special dividend announcement [1] - **Hydro Power Recovery**: Hydro power operating profit surged 5.3x YoY to RMB 1.35 billion in H1 2024, exceeding expectations by 25%, due to improved water conditions [1] - **Wind and Solar Growth**: Despite a decline in utilization hours for wind (-8%) and solar (-4%) in H1, operating profits for wind and solar increased by 35% and 63% respectively, supported by new capacity additions [1] - **Coal Power Margin Expansion**: The coal power segment saw a 44% YoY increase in operating profit, driven by a higher spark spread (RMB 0.118/kWh vs. RMB 0.105/kWh in H1 2023) due to lower coal costs [1] - **Special Dividend**: A special dividend of RMB 0.05 per share was announced to celebrate the company's 20th anniversary of listing in Hong Kong [1] Financial Performance and Forecasts - **H1 2024 Earnings**: Net profit rose 53% YoY to RMB 2.57 billion, slightly above expectations by 2% [1] - **2024/25 Profit Growth**: Profit growth is forecasted at 69% and 39% for 2024 and 2025 respectively, despite downward revisions of 2.5% and 6.0% due to lower wind and solar utilization hours [2] - **Dividend Yield**: The company's dividend yield for 2024/25 is expected to exceed 7%, with a payout ratio of 65% or higher, including the special dividend [2] Capacity and Generation Outlook - **Hydro Power**: Hydro utilization hours are expected to remain at historically high levels, with a 10% upward revision in hydro generation forecast for 2024, leading to a 57% YoY increase in hydro power output [1] - **Wind and Solar**: The company maintains its 2024 target of adding 3GW of wind and 4GW of solar capacity, despite a 5% and 2% downward revision in wind and solar generation forecasts due to lower wind speeds and solar irradiance [1] - **Total Capacity**: By 2026, the company's total installed capacity is projected to reach 67,019 MW, with renewable energy accounting for 83.5% of the total [7] Valuation - **Sum-of-the-Parts Valuation**: The target price of HKD 4.56 is derived from a sum-of-the-parts valuation, with hydro, wind, and solar segments valued at 0.75x, 8.5x, and 8.5x 2025E P/B and P/E multiples respectively [8] Industry Comparison - **Peer Comparison**: Among covered companies in the renewable energy sector, China Power (2380 HK) has a 27.4% potential upside, compared to peers like Huadian Power (836 HK) with 23.5% and Longyuan Power (916 HK) with 37.2% [9]

2024 年 08 月 26 日 公司研究 评级：买入(维持) 研究所： 证券分析师： 钟琪 S0350523080002 zhongq@ghzq.com.cn [Table_Title] 各板块业绩表现亮眼，拟中期特别派息 ——中国电力（02380）2024 年中报点评 最近一年走势 相对恒生指数表现 2024/08/26 表现 1M 3M 12M 中国电力 -4.0% 1.9% 30.4% 恒生指数 4.6% -4.4% -0.9% 市场数据 2024/08/26 当前价格（元） 3.59 52 周价格区间（元） 2.67-4.27 总市值（百万） 44,408.84 流通市值（百万） 44,408.84 总股本（万股） 1,237,015.10 流通股本（万股） 1,237,015.10 日均成交额（百万） 89.36 近一月换手（%） 2.79 相关报告 《中国电力（02380）2023 年年报点评：水&火电 业绩修复+风光装机，共筑 2024 年成长（买入）* 电力*钟琪》——2024-03-26 事件: 2024 年 8 月 22 日，中国电力发布 2024 年中报：2024 年上半年公司实 现收 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company's performance has significantly improved, with a notable increase in net profit driven by both hydropower and new energy asset injections. The net profit for the first half of the year reached 2.802 billion yuan, representing a year-on-year growth of 51.50% [4][5]. - The company announced a special dividend of 0.05 yuan per share to celebrate its 20th anniversary of listing, alongside a commitment to a minimum dividend payout of 50%, enhancing its investment value [4][5]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 26.472 billion yuan, a year-on-year increase of 24.18%. The net profit attributable to equity holders was 2.802 billion yuan, up 51.50% year-on-year [4]. - Hydropower sales volume reached 10.675 billion kWh, a year-on-year increase of 89.85%, with net profit from hydropower at 766 million yuan, marking a significant turnaround [4][5]. - Wind power sales volume was 13.148 billion kWh, up 57.54%, while solar power sales volume reached 11.831 billion kWh, increasing by 96.67% [4]. - The company’s coal-fired power segment achieved a net profit of 1.108 billion yuan, a year-on-year growth of 97.23%, with a profit per kWh of 0.041 yuan, reflecting strong operational performance [5]. Investment Outlook - The company is positioned as a flagship platform under the State Power Investment Corporation, with expectations for accelerated asset securitization. The projected earnings for 2024-2026 are 5.004 billion, 6.046 billion, and 7.157 billion yuan, respectively, with corresponding EPS of 0.40, 0.49, and 0.58 yuan [5]. - The price-to-earnings ratios are projected to be 8.09, 6.70, and 5.66, indicating sufficient value for investment [5].