Ge Long Hui·2026-03-19 15:33Core Viewpoint - The company reported a slight increase in revenue and net profit for 2025, but costs exceeded expectations, leading to a lower-than-expected net profit. The company maintains a positive outlook on future capital expenditures and net profit growth due to ongoing projects and regulatory agreements [1][3]. Financial Performance - Revenue for 2025 reached HKD 12.125 billion, a year-on-year increase of 0.56% - Net profit attributable to shareholders was HKD 3.149 billion, a year-on-year increase of 1.22%, slightly below the expected HKD 3.342 billion due to higher-than-expected cost increases [1] - The dividend per share (DPS) remained stable at HKD 0.3203, with a dividend yield of 4.7% [1] Capital Expenditure and Growth Plans - Capital expenditure for 2025 increased by 14% to HKD 4.153 billion, with a total capital expenditure plan of HKD 22 billion for 2024-2028 [3] - The average annual capital expenditure for 2026-2028 is projected to be HKD 4.729 billion, a 14% increase compared to 2025 [3] - The company is committed to increasing natural gas generation capacity, with a target of 69% by 2025, and plans to phase out coal-fired units [2] Profit Forecast and Valuation - The company expects net profits for 2026-2028 to be HKD 3.207 billion, HKD 3.279 billion, and HKD 3.368 billion, respectively [3] - The estimated price-to-book (PB) ratio for 2026 is set at 1.40x, with a target price of HKD 7.84, reflecting a positive outlook on future capital expenditures and net profit growth [3]