Core Viewpoint - The company is expected to improve its cash flow and shareholder returns due to accelerated subsidy payments, with a stable increase in dividend payout ratio projected during the 14th Five-Year Plan period. Financial Performance - In the first half of 2025, the company achieved operating revenue of RMB 6.845 billion, a year-on-year increase of 3.30% [1][2] - Pre-tax profit was RMB 2.358 billion, up 1.37% year-on-year [1][2] - Net profit attributable to shareholders was RMB 1.688 billion, a decrease of 4.37% year-on-year [1][2] - Basic earnings per share were RMB 0.2046, with an interim dividend of RMB 0.03 [1][2] Dividend Policy - The company plans to stabilize the dividend payout ratio to around 33% during the 14th Five-Year Plan period, considering shareholder returns, growth needs, and industry dividend levels [1][2] - The board has decided that the dividend ratio for 2025-2027 will not be less than 30% of net profit attributable to shareholders, with an initial dividend of RMB 0.1 per share planned for 2025 [3] Capacity Expansion - The company aims to add 3 GW of new installed capacity in 2025, targeting a total installed capacity of approximately 21 GW by the end of the 14th Five-Year Plan, with over 80% from wind power and 20% from solar [1][3] Subsidy Recovery - Recent announcements indicate that renewable energy and biomass power generation companies have received substantial subsidies, with many exceeding the total subsidy amount for 2024 by August [3][4] - As of June 30, the company had a subsidy receivable balance of approximately RMB 23.5 billion, with a recovery of RMB 160 million in the first half of the year, and RMB 842 million recovered in July, an increase of over RMB 700 million year-on-year [4] - The acceleration of subsidy payments is expected to improve the company's cash flow and balance sheet, with potential reversals of previously recognized impairment provisions [4] Investment Rating - The company has been given a "Buy" rating, with the target price raised to HKD 3.20 per share, reflecting a potential upside of 22% from the current price, corresponding to PE ratios of 10.4x and 9.4x for 2025 and 2026, respectively [2][4]
大唐新能源(1798.HK)：派息率稳定提升 受益国补发放提速