Core Viewpoint - CICC maintains the earnings forecast for Honghua Smart Energy (01083) for 2025 and 2026, with a target price of HKD 5.00, indicating a potential upside of 16.3% from the current stock price [1] Group 1: Financial Performance - The company reported 1H25 revenue of HKD 10.44 billion, a year-on-year decrease of 1%, and a net profit of HKD 758 million, a year-on-year increase of 2%, which is in line with market expectations [2] - The core business profit for 1H25 was HKD 719 million, also reflecting a year-on-year increase of 2% [2] - The company plans to distribute an interim dividend of HKD 0.05 per share for the first time [2] Group 2: Business Segments - Natural gas sales volume for 1H25 was 8.75 billion cubic meters, remaining flat year-on-year, with a city gas price difference of HKD 0.57 per cubic meter, up by HKD 0.01 year-on-year [2] - The gas business operating profit for 1H25 was HKD 852 million, a year-on-year decrease of 1% [2] - Photovoltaic power generation for 1H25 reached 1.18 billion KWh, a year-on-year increase of 44%, with a gross profit of HKD 0.36 per KWh, down by HKD 0.04 year-on-year [2] - The renewable energy business operating profit was HKD 170 million, a year-on-year increase of 5% [2] Group 3: Strategic Initiatives - To address the impact of the "136 Document" on distributed photovoltaic business profitability, the company plans to increase investment in commercial and industrial energy storage and leverage AI algorithms and existing customer resources to expand its electricity sales business [3] - The company aims to transform into a leading global smart energy aggregation service provider, targeting 12 GW of managed photovoltaic installations and 6 GWh of energy storage by 2030 [3] Group 4: Capital Expenditure - The company's capital expenditure for 1H25 was HKD 1.4 billion, a year-on-year decrease of 30% [4] - For 2H25, the company is expected to continue the downward trend in capital expenditure, with an annual capital expenditure forecast of HKD 2.5 to 3 billion [4] - The company is likely to maintain or slightly reduce its interest-bearing debt due to strict control over capital expenditure and the planned rollout of some distributed photovoltaic installations [4]
中金：维持港华智慧能源(01083)跑赢行业评级 目标价5港元