[Performance Announcement](index=1&type=section&id=Performance%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Xinyi Energy's H1 2024 performance saw core financial metrics decline across the board due to grid curtailment, market-based power trading, and RMB depreciation H1 2024 Financial Highlights | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue (HKD Million) | 1,218.4 | 1,288.6 | -5.4% | | Profit Attributable to Equity Holders (HKD Million) | 394.5 | 566.9 | -30.4% | | Basic Earnings Per Share (HK Cents) | 4.78 | 7.48 | -36.1% | | Interim Dividend Per Share (HK Cents) | 2.3 | 3.4 | -32.4% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) H1 2024 saw revenue decline 5.4% to HKD 1.218 billion, gross profit fall 13.5%, and finance costs rise 21.6%, resulting in a 30.4% drop in profit for the period Key Items from Condensed Consolidated Statement of Profit or Loss | Item (HKD Thousand) | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,218,405 | 1,288,554 | -5.4% | | Gross Profit | 782,456 | 904,581 | -13.5% | | Operating Profit | 765,839 | 886,017 | -13.6% | | Finance Costs | (197,716) | (162,555) | +21.6% | | Profit Before Income Tax | 570,906 | 725,737 | -21.3% | | Profit for the Period | 395,111 | 567,709 | -30.4% | | Profit Attributable to Equity Holders of the Company | 394,522 | 566,855 | -30.4% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The company recorded a total comprehensive loss of HKD 82.32 million for the period, primarily due to significant foreign currency translation losses of HKD 477 million from RMB depreciation - The company recorded a total comprehensive loss of **HKD 82.32 million**, compared to a loss of HKD 78.89 million in the prior period, impacted by foreign currency translation differences[5](index=5&type=chunk) - Foreign currency translation differences resulted in a loss of **HKD 477 million**, which was the primary driver of the comprehensive loss[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets slightly increased by 1.8% to HKD 21.504 billion, while total liabilities rose 8.5% to HKD 8.494 billion, and total equity decreased 2.2% to HKD 13.010 billion Statement of Financial Position Summary | Item (HKD Thousand) | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 21,504,066 | 21,133,563 | +1.8% | | Total Liabilities | 8,493,671 | 7,826,245 | +8.5% | | Total Equity | 13,010,395 | 13,307,318 | -2.2% | | Net Trade Receivables | 4,402,272 | 3,912,330 | +12.5% | | Bank Borrowings (Current + Non-current) | 6,627,975 | 6,270,466 | +5.7% | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) H1 2024 saw net cash inflow from operating activities remain flat at HKD 170 million, while investing outflow narrowed to HKD 666 million, and financing inflow was HKD 334 million, resulting in period-end cash of HKD 472 million Cash Flow Statement Summary | Item (HKD Thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 170,380 | 175,967 | | Net Cash Used in Investing Activities | (665,620) | (1,661,824) | | Net Cash from Financing Activities | 334,001 | 490,527 | | Net Decrease in Cash and Cash Equivalents | (161,239) | (995,330) | | Cash and Cash Equivalents at End of Period | 472,140 | 780,226 | [Notes to the Condensed Consolidated Financial Information](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) [Note 3: Revenue, Other Income and Segment Information](index=11&type=section&id=Note%203:%20Revenue,%20Other%20Income%20and%20Segment%20Information) Revenue primarily from electricity sales and tariff adjustments declined in H1 2024, with electricity sales down 4.0% and tariff adjustments down 7.6%, and no segment information is presented due to concentrated operations Revenue Composition (HKD Thousand) | Revenue Source | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Electricity Sales | 698,326 | 727,536 | -4.0% | | Tariff Adjustments | 513,654 | 556,134 | -7.6% | | Operation and Management Services | 6,425 | 4,884 | +31.5% | | **Total** | **1,218,405** | **1,288,554** | **-5.4%** | - The Group primarily operates and manages solar power plants in China, with a single business segment, thus no segment information is presented[17](index=17&type=chunk) [Note 6: Financial Income and Finance Costs](index=13&type=section&id=Note%206:%20Financial%20Income%20and%20Finance%20Costs) H1 2024 finance costs increased 21.6% to HKD 198 million, driven by a 45.3% rise in bank borrowing interest expense to HKD 174 million Finance Costs Composition (HKD Thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | 173,507 | 119,359 | | Interest on Lease Liabilities | 24,209 | 22,418 | | Interest Expense on Deferred Payments for Business Combination Purchase Consideration | — | 20,778 | | **Total** | **197,716** | **162,555** | [Note 9: Dividends](index=15&type=section&id=Note%209:%20Dividends) The Board declared an interim dividend of HKD 2.3 cents per share for H1 2024, a 32.4% decrease from the prior period, totaling approximately HKD 190 million - Proposed interim dividend of **HKD 2.3 cents per share**, totaling **HKD 190 million**[28](index=28&type=chunk) - The interim dividend for the same period in 2023 was **HKD 3.4 cents per share**[28](index=28&type=chunk) [Note 11: Trade and Other Receivables](index=17&type=section&id=Note%2011:%20Trade%20and%20Other%20Receivables) As of June 30, 2024, total trade receivables rose to HKD 4.447 billion, with tariff adjustment receivables at HKD 4.230 billion, and 69% of receivables were over one year old, indicating prolonged government subsidy collection Trade Receivables Composition (HKD Thousand) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Electricity Sales Receivables | 216,453 | 198,549 | | Tariff Adjustment Receivables | 4,230,286 | 3,753,299 | | **Total** | **4,446,739** | **3,951,848** | - Trade receivables over 365 days increased from **HKD 2.58 billion** to **HKD 3.07 billion**, representing **69%** of the total[32](index=32&type=chunk) [Note 14: Bank Borrowings](index=21&type=section&id=Note%2014:%20Bank%20Borrowings) As of June 30, 2024, total bank borrowings increased 5.7% to HKD 6.628 billion, with non-current borrowings rising to 59.8% of the total, and the effective annual interest rate decreased to 4.71% Bank Borrowings Maturity Structure (HKD Thousand) | Maturity | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 1 year (Current) | 2,662,249 | 3,636,561 | | Over 1 year (Non-current) | 3,965,726 | 2,633,905 | | **Total** | **6,627,975** | **6,270,466** | - Borrowing currency composition: **HKD accounts for 78.1%**, and **RMB for 21.9%**[38](index=38&type=chunk)[68](index=68&type=chunk) - The effective annual interest rate decreased from **6.05%** at the beginning of the period to **4.71%**[39](index=39&type=chunk) [Management Discussion and Analysis](index=26&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=26&type=section&id=Overview) H1 2024 saw increased PV installations in China leading to grid curtailment and lower market electricity prices, resulting in revenue and profit declines of 5.4% and 30.4% respectively, despite increased installed capacity - Rapid expansion of China's PV industry led to grid curtailment and power loss for the company[47](index=47&type=chunk) - Participation in market-based power trading resulted in some electricity prices being lower than traditional on-grid tariffs, impacting revenue[47](index=47&type=chunk) - As of June 30, 2024, total approved generation capacity increased to **3,850.5 MW**[47](index=47&type=chunk) [Business Review](index=27&type=section&id=Business%20Review) Despite a 7.4% increase in total power generation, revenue declined 5.4% due to RMB depreciation, grid curtailment, and market-based trading, while the company acquired a 200 MW solar project and focused on grid-parity investments - Total power generation increased by **7.4%** YoY, but revenue decreased by **5.4%**, primarily due to RMB depreciation, power curtailment losses, and market-based trading[48](index=48&type=chunk) - Completed the acquisition of a **200 MW** large-scale solar power plant project in Guangdong Province during the first half[49](index=49&type=chunk) - The company continues to invest in grid-parity projects to reduce reliance on government subsidies and improve operating cash flow[49](index=49&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) Financial performance was under pressure, with revenue down 5.4%, cost of sales up 13.5% leading to a gross margin drop from 70.2% to 64.2%, and profit attributable to equity holders plummeting 30.4% due to increased finance costs Financial Performance Summary | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue (HKD Million) | 1,218.4 | 1,288.6 | | Gross Margin | 64.2% | 70.2% | | Finance Costs (HKD Million) | 197.7 | 162.6 | | EBITDA (HKD Million) | 1,128.1 | 1,208.9 | | Net Profit Margin | 32.4% | 44.0% | | Profit Attributable to Equity Holders (HKD Million) | 394.5 | 566.9 | [Revenue](index=28&type=section&id=Revenue) Total revenue decreased 5.4% to HKD 1.218 billion, with electricity sales down 4.0% and tariff adjustments down 7.6%, primarily due to grid curtailment, market trading, and RMB depreciation - Electricity sales revenue decreased by **4.0%** to **HKD 698 million**, and tariff adjustment revenue decreased by **7.6%** to **HKD 514 million**[51](index=51&type=chunk) [Cost of Sales and Gross Profit](index=30&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales increased 13.5% to HKD 436 million due to new projects, leading to a 13.5% decline in gross profit to HKD 783 million and a gross margin drop from 70.2% to 64.2% - Cost of sales increased by **13.5%**, primarily due to depreciation and maintenance expenses from new projects[54](index=54&type=chunk) - Gross margin decreased from **70.2%** in the prior period to **64.2%**[55](index=55&type=chunk) [Finance Costs](index=31&type=section&id=Finance%20Costs) Total finance costs increased 21.5% from HKD 163 million to HKD 198 million, primarily driven by a 45.3% rise in bank borrowing interest expense to HKD 174 million - Interest expense on bank borrowings significantly increased from **HKD 119 million** to **HKD 174 million**, primarily due to an increase in interest-bearing bank borrowing balances[59](index=59&type=chunk) [EBITDA and Net Profit](index=32&type=section&id=EBITDA%20and%20Net%20Profit) EBITDA decreased 6.7% to HKD 1.128 billion, and profit attributable to equity holders significantly declined 30.4% to HKD 395 million, with net profit margin falling from 44.0% to 32.4% - EBITDA was **HKD 1.128 billion**, a **6.7%** YoY decrease[61](index=61&type=chunk) - Profit attributable to equity holders was **HKD 395 million**, a **30.4%** YoY decrease[61](index=61&type=chunk) [Liquidity and Financial Resources](index=33&type=section&id=Liquidity%20and%20Financial%20Resources) The company's financial position remained stable with an improved current ratio of 1.5, but the net debt-to-equity ratio increased to 47.3% due to decreased cash and increased bank borrowings - Current ratio improved from **1.2** to **1.5**[62](index=62&type=chunk) - Net debt-to-equity ratio increased from **42.3%** at the beginning of the period to **47.3%**[62](index=62&type=chunk) - Cash and cash equivalents at period-end were **HKD 472 million**[62](index=62&type=chunk) [Business Outlook](index=34&type=section&id=Business%20Outlook) The company anticipates improved grid curtailment due to national policies, plans to acquire 790 MW of solar projects in Q3 2024, and will optimize its debt structure by increasing lower-cost domestic RMB loans and replacing short-term with long-term debt - National policies support new energy absorption, expecting power curtailment losses to gradually decrease[63](index=63&type=chunk) - Plans to acquire eight large-scale solar power plant projects with a total capacity of **790 MW**, expected to commence in Q3 2024[63](index=63&type=chunk) - The company will increase domestic bank borrowings to reduce financing costs and conduct long-term for short-term debt swaps to optimize its financial structure[64](index=64&type=chunk) [Other Company Information](index=35&type=section&id=Other%20Company%20Information) [Interim Dividend](index=38&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HKD 2.3 cents per share for 2024, with a scrip dividend option, payable on October 16, 2024 - Declared an interim dividend of **HKD 2.3 cents per share**, a **32.4%** YoY decrease[71](index=71&type=chunk) - Shareholders have the option to receive dividends in cash or new shares[71](index=71&type=chunk) [Corporate Governance and Compliance](index=39&type=section&id=Corporate%20Governance%20and%20Compliance) The company confirmed compliance with HKEX Corporate Governance Code and Model Code for securities transactions in H1 2024, with interim results reviewed by the Audit Committee but not externally audited - The company complied with the Listing Rules' Corporate Governance Code and the Model Code for securities transactions by directors[72](index=72&type=chunk)[73](index=73&type=chunk) - The interim results were reviewed by the company's Audit Committee but not by external auditors[74](index=74&type=chunk)

Financial Performance - The company recorded an 8.7% growth in revenue for the year, despite the depreciation of the Renminbi against the Hong Kong Dollar[12]. - The company's consolidated revenue for the year ended December 31, 2023, increased by 8.7% to HKD 2,517.4 million, compared to HKD 2,315.3 million in 2022[18]. - Profit attributable to equity holders rose slightly by 2.2% to HKD 993.0 million, with basic earnings per share decreasing by 5.6% to HKD 0.1256[18]. - Revenue from electricity sales increased by 10.9% to HKD 1,419.1 million, while revenue from price adjustments decreased by 13.0% to HKD 1,088.1 million[20]. - The company recorded revenue of HKD 10.2 million from solar power plant operation and management services, accounting for 0.4% of total revenue for the year ended December 31, 2023[23]. - Gross profit rose by 4.6% to HKD 1,709.2 million, with a gross profit margin of 67.9%, down 2.7 percentage points from 2022[25]. - EBITDA for the year was HKD 2,327.0 million, an increase of 8.6% from HKD 2,142.0 million in 2022, with an EBITDA margin of 92.4%[31]. - Net profit attributable to equity holders was HKD 993.0 million, up 2.2% from HKD 971.5 million, with a net profit margin of 39.4%[31]. - Total comprehensive income for the year was HKD 666,904,000, a significant recovery from a loss of HKD 722,538,000 in the previous year[154]. Solar Power Projects - For the fiscal year ending December 31, 2023, the total revenue generated from solar power projects acquired in 2022 and 2023 was HKD 259.8 million, contributing 10.4% to the total solar power business revenue[12]. - The total approved capacity of the company's solar power projects reached 3,650.5 MW, with 1,724 MW under feed-in tariff policies and 1,926.5 MW under grid parity policies[13]. - The company has acquired four large-scale solar power projects in China with a total approved capacity of 636.5 MW under grid parity policies[13]. - The company added over 1 GW of new solar power projects in 2023, providing a solid pipeline for future acquisitions[16]. - The company expects a continued increase in the installed capacity of solar power generation projects, particularly in price-sensitive large-scale solar projects, despite a high base in 2023[16]. - The company completed the acquisition of four solar power projects from Xinyi Solar during the fiscal year[36]. - The group completed the acquisition of a large-scale solar power project with a total approved capacity of 84.5 MW on December 7, 2023[129]. - The company plans to continue expanding its solar power operations in China, focusing on new technology development and market expansion strategies[162]. Financial Management and Risks - The company has started borrowing from domestic banks in China, with 13.3% of total bank borrowings denominated in Renminbi as of December 31, 2023[14]. - The company is actively seeking financing opportunities with domestic banks to reduce financial costs and mitigate currency mismatch risks[14]. - The company faces significant risks including delayed collection of receivables from state-owned grid companies, which may impact its business and financial condition[83]. - The company has outlined its financial risk management strategies in the annual report, addressing foreign exchange and other financial risks[83]. - The company’s net debt increased to HKD 5,625,457 in 2023 from HKD 3,163,013 in 2022, resulting in a debt-to-equity ratio of 42.3%, up from 26.9%[185]. - The group has established a credit policy to continuously monitor credit risk levels associated with trade receivables and other financial assets[170]. - The expected credit loss ratio for restricted cash, cash equivalents, and notes receivable was assessed as not significant, resulting in no provisions being made for 2023[174]. Corporate Governance - The company is led by experienced executives, including Dan Sri Dato' Dong Qing Shi, who has over 13 years in the power industry and 35 years in glass manufacturing[42]. - The management team has extensive experience in the energy sector, with key members holding degrees from prestigious universities such as the University of Melbourne and Tsinghua University[43]. - The board includes independent non-executive directors with significant financial management and accounting experience, enhancing corporate governance[45]. - The company has a strong governance structure, with a board consisting of four executive directors and three independent non-executive directors, ensuring compliance with listing rules[49]. - The board is responsible for overseeing the management and safeguarding shareholder interests, with a focus on long-term value creation[48]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring adherence to applicable principles and provisions[48]. - The board of directors held a total of four meetings in the year ending December 31, 2023, with all members present at each meeting[51]. Shareholder Returns and Dividends - The board proposed a final dividend of HKD 0.026 per share, subject to shareholder approval at the annual general meeting[32]. - The interim dividend paid to shareholders was HKD 3.4 cents per share, totaling approximately HKD 279.1 million, distributed on October 10, 2023[76]. - The company emphasizes the importance of balancing future business growth with shareholder returns when considering dividend distributions[87]. - The company has changed its dividend policy, aiming to maintain a stable dividend payout ratio while ensuring sufficient cash reserves for operational needs and future growth[87]. Environmental and Social Responsibility - The company has maintained compliance with all applicable environmental laws and regulations, with no known significant non-compliance issues as of December 31, 2023[80]. - Charitable donations made by the group amounted to HKD 5.8 million for the fiscal year ending December 31, 2023, compared to HKD 6.8 million in 2022[82]. - The company emphasizes its commitment to reducing environmental impact through various methods, including the use of rainwater for cleaning solar panels[78]. Employee and Management Structure - The group has approximately 385 full-time employees in Hong Kong and China, with compensation packages aligned with current market terms[126]. - Employee gender distribution shows 92% male and 8% female among 385 employees, including senior management[61]. - The management team includes experienced professionals with over 12 years in the photovoltaic industry, enhancing operational and acquisition capabilities[47]. - The company has established a standard employee performance assessment system to evaluate contributions to the group[108]. Audit and Compliance - The audit committee reviewed the audited consolidated financial statements for the year ending December 31, 2023[132]. - The independent auditor's report confirmed that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2023[139]. - The company confirmed compliance with the trading standards set out in the standard code for securities transactions for the year ending December 31, 2023[53].

Investment Rating - The report upgrades the investment rating of the company to "Buy" with a target price of HKD 1.46, indicating a potential upside of 25.86% from the closing price of HKD 1.16 on March 12, 2024 [4]. Core Views - The company achieved a revenue of HKD 2.517 billion in 2023, representing a year-on-year increase of 8.7%, while the net profit attributable to shareholders was HKD 993 million, up 2.2% year-on-year [2][3]. - The increase in revenue was primarily driven by the contribution from solar power projects acquired in the past two years, which saw a 10.9% increase in electricity production [2]. - The company has a sufficient reserve of projects for acquisition, and the return on investment for new solar power projects is expected to improve due to a significant drop in photovoltaic module prices since Q2 2023 [2]. - The company received approximately HKD 527 million in renewable energy subsidies in 2023, a decline of about 75% from the previous year, with outstanding receivables for subsidies amounting to HKD 3.753 billion by the end of 2023 [2]. - The company’s financing costs are expected to improve as the borrowing structure is optimized and the U.S. dollar enters a potential rate-cutting cycle [2]. Financial Summary - The company’s revenue is projected to grow from HKD 2.517 billion in 2023 to HKD 3.481 billion by 2026, with a compound annual growth rate (CAGR) of approximately 10.81% [3]. - The net profit attributable to shareholders is expected to increase from HKD 993 million in 2023 to HKD 1.566 billion by 2026, reflecting a CAGR of about 11.12% [3]. - The earnings per share (EPS) is forecasted to rise from HKD 0.13 in 2023 to HKD 0.19 by 2026 [3]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 8.05 in 2024 to 6.17 in 2026, indicating a potentially undervalued stock [3].

Investment Rating - The report assigns a "Hold" rating to the company with a target price of HKD 1.32, representing a potential upside of 13% from the current price of HKD 1.17 [2][15]. Core Insights - The company achieved a net profit of HKD 993 million in 2023, reflecting a year-on-year growth of 2.2%. Revenue reached HKD 2.517 billion, up 8.7% year-on-year, primarily driven by increased electricity sales from newly acquired power plants [5][10]. - The company plans to acquire 700-1000 MW of solar power projects in 2024, aiming for steady growth in its operational capacity. As of December 31, 2023, the total approved capacity of solar power plants held and operated by the company was 3,650.5 MW [6][11]. - The financial position remains robust, with a net debt ratio of 42.3%, significantly below the industry average. The company is increasing its domestic financing to support future acquisitions [7][14]. Financial Performance - In 2023, the company reported a total electricity sales volume of 3,817.6 GWh, marking a 19.6% increase year-on-year. The slight profit growth was attributed to rising offshore interest rates and increased tax expenses [5][10]. - The company’s financial outlook includes projected revenues of HKD 3.049 billion in 2024, with a year-on-year growth rate of 21.1% [15][17]. - The net profit forecast for 2024 is HKD 1.215 billion, reflecting a growth rate of 22.3% compared to 2023 [15][17]. Shareholder Information - Major shareholders include Xinyi Energy (BVI) Limited, holding 49.03%, and Xinyi Group (Glass) Limited, holding 5.54% [4].

Investment Rating - The report maintains an "Accumulate" rating for the company [2][7]. Core Viewpoints - The company achieved a revenue of HKD 2.517 billion in 2023, representing an 8.7% year-on-year growth, primarily driven by new project acquisitions contributing to power generation [3][4]. - The net profit attributable to shareholders for 2023 was HKD 993 million, reflecting a 2.2% increase year-on-year, with basic earnings per share at HKD 0.1256, a decrease of 5.6% [3][4]. - The company plans to distribute a final dividend of HKD 0.026 per share, totaling HKD 0.06 for the year [4][7]. - The company has a robust project reserve, having acquired four photovoltaic power station projects with a total approved capacity of 636.5 MW in 2023, bringing the total operational capacity to 3,650.5 MW by the end of 2023 [5][6]. - The company’s power generation increased by 10.9% year-on-year, with subsidy recoveries amounting to RMB 485 million in 2023 [7]. - High financing costs have impacted the company's performance, with financing costs rising by 34% to HKD 360 million in 2023, and the company aims to expand its financing channels in mainland China to reduce overall costs [7]. Financial Summary - Revenue projections for 2024-2026 are estimated at HKD 2.850 billion, HKD 3.183 billion, and HKD 3.517 billion, with year-on-year growth rates of 13.21%, 11.70%, and 10.47% respectively [3][7]. - Net profit projections for the same period are HKD 1.097 billion, HKD 1.205 billion, and HKD 1.345 billion, with growth rates of 10.50%, 9.86%, and 11.56% respectively [3][7]. - The net profit margin for 2023 was 39.45%, with a return on equity of 7.92% [3][7].

信义能源（3868 HK） | 2024年2月29日 香港股市 | 新能源 | 光伏发电 更新报告 信义能源（3868 HK） 评级：中性 目标价：1.19 港元 FY23 业绩逊预期 股票资料（更新至2024年2月28日） 去年股东净利润同比上升2.2% 现价 1.10港元 2023年股东净利润同比上升2.2%至9.9 亿元(港元，下同)，较我们及市场预测的11.3 亿 及 11.7 亿元，分别低 12.2%及 15.3%，主因：(一)部份因发电量同比上升 10.9%所产生的 总市值 9,082.25百万 港元 收入被人民币贬值因素抵消，最终公司总收入同比增长 8.7%至 25.2 亿元；(二)港元借贷 流通股比例 24.57% 利率上升导致财务开支同比增长33.8%%至3.6亿元。截至2023年12月底，港币及人民 已发行总股本 8,256.59百万 币借贷占比分别为86.7%及13.3%。 52周价格区间 0.98-2.68港元 电费补贴收款金额同比下跌74.1%至4.9亿元人民币。公司财务情况略逊预计，净负债率 3个月日均成交额 8.72百万 港元 由2022年的26.9%上升至2023年的42.3% ...

交银国际研究 公司更新 新能源 收盘价 目标价 潜在涨幅 2024年2月29日 港元1.09 港元1.16↓ +6.4% 信义能源 (3868 HK) 业绩低于预期，弃光和电价风险加大，维持中性  天气、弃光导致售电量欠佳，业绩低于预期：公司去年实现归母净利9.93 个股评级 亿港元，同比增长2.2%，其中下半年4.26亿港元，同比/环比+22.3%/-24.8% 中性 ，低于我们/市场预期25%/27%，主要是由于售电量因天气、弃光等因素低 于预期。售电量同比增长19.6%至3817吉瓦时，其中下半年仅同比/环比增 长14.1%/2.7%，全年平均利用小时下降2.5%。市场电量占比13%，综合考 1年股价表现 虑绿电交易溢价和市场化交易折价，相比标杆电价仍有溢价。毛利率同比 下降2.7个百分点至67.9%，其中下半年同比/环比下降2.6/4.7个百分点至 3868 HK 恒生指数 10% 65.5%。全年每股股息减少60%至0.06港元，派息比例50%。 0% -10%  收购规模不及预期，融资利率继续上升。公司去年仅从母公司收购637兆 -20% 瓦项目，低于此前0.7-1吉瓦的指引。公司今年计划收购 ...

智通财经APP获悉，瑞银发布研究报告称，维持信义能源(03868)"中性"评级，下调2024年至2026年每股 盈利预测8%、11%及12%，反映慢于预期的产能增长、更高利息成本及更低利用率，部分被单位资本开 支下降所补偿，目标价由1.3港元下调至1.2港元。 该行指，撇除一次性项目，公司去年经常性净利同比跌15%，较该行及市场预期低11%及14%，全年派 息减少六成，亦差于预期。该行指出业绩有三项事项值得留意，包括利率上升导致净融资成本同比升 40%，去年发电产能利用时数同比跌2.5%及部分省分项目面临被削减影响EBIT率下降1个百分点至 66%，以及全年新产能增长达636.5兆瓦。 ...

Investment Rating - The report maintains a "Buy" rating for the company [3][9]. Core Views - The company achieved a revenue of HKD 25.17 billion in 2023, representing a year-on-year growth of 8.7%, while the net profit attributable to shareholders was HKD 9.93 billion, up 2.2% year-on-year [3]. - The company’s power generation increased by 19.6% year-on-year, with a slight decline in gross margin by 2.7 percentage points to 67.9% due to accounting adjustments and a decrease in solar utilization hours [3]. - The company holds a total power station capacity of 3.65 GW, with over half (52.8%) being grid-parity projects, which is a 10 percentage point increase from 2021 [3]. - The company plans to acquire 700 to 1000 MW of large-scale grid-parity solar projects in 2024, with a recent acquisition of a 790 MW solar power station from Xinyi Solar [3]. - The financial expense ratio increased to 14.1%, up 2.5 percentage points year-on-year, primarily due to rising offshore borrowing costs [3]. - The company’s net debt ratio stands at 42.3%, significantly better than the industry average, and plans to increase borrowing from domestic banks to reduce financing costs [3]. Summary by Sections Financial Performance - Revenue for 2023 was HKD 25.17 billion, an increase of 8.7% from 2022 [6]. - Net profit attributable to shareholders was HKD 9.93 billion, reflecting a 2.2% increase year-on-year [6]. - The gross margin for 2023 was 67.9%, down from the previous year [6]. Project and Capacity Analysis - The total power station capacity reached 3.65 GW, a 21% increase from 2022 [3]. - Grid-parity projects now account for 52.8% of the total capacity, up from 42.8% in 2021 [3]. Profit Forecast and Valuation - Adjusted net profit forecasts for 2024 and 2025 are HKD 12.35 billion and HKD 14.24 billion, respectively, with a projected net profit of HKD 15.38 billion for 2026 [3]. - The expected dividend per share for 2024 is approximately HKD 0.065, with current price-to-earnings (P/E), price-to-book (P/B), and dividend yield ratios at 7.35x, 0.62x, and 6%, respectively [3].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 2,517.4 million, representing an increase of 8.7% compared to HKD 2,315.3 million in 2022[2] - Profit attributable to equity holders of the company was HKD 993.0 million, up 2.2% from HKD 971.5 million in the previous year[2] - Basic and diluted earnings per share decreased by 5.6% to HKD 12.56 compared to HKD 13.30 in 2022[2] - Gross profit for the year was HKD 1,709.2 million, with a gross margin of approximately 67.8%[4] - Operating profit increased to HKD 1,653.1 million, compared to HKD 1,540.9 million in 2022[4] - The company reported a total comprehensive income of HKD 666.9 million for the year, compared to a total comprehensive loss of HKD 722.5 million in 2022[5] - Revenue from electricity sales was HKD 1,419,092,000, up from HKD 1,279,205,000 in the previous year, indicating an increase of about 10.9%[12] - The company reported a net loss of HKD 4,898,000 in other losses for 2023, an improvement from a loss of HKD 18,988,000 in 2022[16] - EBITDA for the year was HKD 2,327.0 million, an increase of 8.6% from HKD 2,142.0 million, with an EBITDA margin of 92.4%[58] Dividends - Proposed final dividend per share was HKD 2.6, a decrease of 64.9% from HKD 7.4 in the previous year[2] - The interim dividend per share for 2023 was 3.4 HK cents, significantly lower than 7.7 HK cents in 2022[25] - The proposed final dividend per share for 2023 is 2.6 HK cents, down from 7.4 HK cents in 2022, with a total proposed amount of HKD 214,671,000[26] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 21,133.6 million, up from HKD 19,939.9 million in 2022[6] - Non-current assets increased to HKD 16,163.1 million from HKD 14,740.2 million in the previous year[6] - Total liabilities decreased to HKD 7,826.2 million from HKD 8,177.7 million in 2022[7] - The current ratio improved to 1.2 as of December 31, 2023, compared to 1.0 a year earlier, driven by increases in trade and other receivables[60] - The net debt-to-equity ratio increased to 42.3% as of December 31, 2023, up from 26.9% the previous year, primarily due to a decrease in cash and cash equivalents and an increase in bank borrowings[61] Cash Flow and Expenditures - Cash and cash equivalents stood at HKD 645.0 million as of December 31, 2023, with net cash generated from operating activities at HKD 753.1 million, down from HKD 2,899.4 million in 2022[61] - Capital expenditures for the year amounted to HKD 2,630.2 million, mainly for the acquisition and improvement of solar power projects[62] - The net proceeds from the rights issue in June 2023 amounted to HKD 1,627.8 million, fully utilized by December 31, 2023, primarily for refinancing bank borrowings and general working capital[67] Financing and Borrowings - The group’s bank borrowings amounted to HKD 6,270.5 million as of December 31, 2023, compared to HKD 4,953.8 million in 2022, with a significant portion being unsecured[36] - The actual annual interest rate for bank borrowings increased to 6.05% in 2023 from 5.56% in 2022[37] - The company incurred financing costs totaling HKD 361,728,000, which increased from HKD 270,343,000 in the previous year, representing a rise of approximately 33.8%[18] Customer and Revenue Insights - The company’s major customer A generated revenue of HKD 553,524,000 in 2023, up from HKD 498,958,000 in 2022, an increase of about 10.9%[15] - Revenue from solar power plant operation and management services amounted to HKD 10.2 million, representing 0.4% of total revenue[50] - The revenue generated from solar power projects acquired in 2022 and 2023 contributed HKD 259.8 million, accounting for 10.4% of total solar power business revenue[40] Government Subsidies and Taxation - The company received government subsidies amounting to HKD 3,636,000, a decrease from HKD 17,313,000 in the previous year, indicating a decline of approximately 78.9%[12] - The immediate income tax expense for 2023 was HKD 320,775,000, slightly down from HKD 338,856,000 in 2022, a decrease of about 5.3%[19] - The company has a corporate income tax rate of 25%, with certain subsidiaries benefiting from reduced rates of 15% and 9%[20] Operational Developments - The group completed the acquisition of four solar power projects from Xinyi Solar during the fiscal year ending December 31, 2023[64] - The group plans to exercise a call option for the acquisition of eight solar power plants with a total approved capacity of 790 MW in February 2024[70] - The group expects the full performance of the 2023 portfolio to gradually reflect in its 2024 results following the completion of acquisitions in the second half of 2023[40] Market and Industry Trends - The competitive environment in the solar power sector is intensifying, necessitating stricter quality development and cost control for solar power project operators[46] - The establishment of a standard green certification system and the promotion of green electricity trading are key initiatives to support renewable energy consumption in China[44] - In 2023, China's newly installed photovoltaic capacity reached a historical high of 217 GW, significantly exceeding initial market expectations[44] Governance and Compliance - The audit committee was established on November 22, 2018, consisting of three independent non-executive directors, with the main responsibility of reviewing the accounting principles and internal control procedures of the group[73] - The auditor, PwC, confirmed that the financial data in the preliminary announcement aligns with the audited consolidated financial statements for the year ending December 31, 2023[76] - The annual general meeting is scheduled for May 31, 2024, with a suspension of share transfer registration from May 28 to May 31, 2024[77]