CHINA POWER(HK:02380)2024-06-17 01:32Investment Rating - The report maintains an "Outperform" rating for China Power International Development (2380 HK) with a target price of HKD 4.72, while the current price is HKD 3.83 [3][12]. Core Insights - The company experienced lower-than-expected performance in 2023 due to a historically dry season affecting hydropower generation, resulting in a loss of RMB 830 million from hydropower operations. However, profits from new energy and thermal power have significantly increased [9][11]. - The installed capacity of new energy has grown significantly, reaching 45.02 GW by the end of 2023, with clean energy accounting for nearly 75% of the total. The company plans to further increase its wind and solar capacity in 2024 [10][11]. - The thermal power sector's profitability has improved due to a decrease in coal prices and effective coal-fired power joint ventures, leading to a net profit of RMB 1.32 billion in 2023 [11]. Financial Summary - In 2023, the company reported operating income of RMB 44.262 billion, a year-on-year increase of 1.31%, and a net profit attributable to the parent company of RMB 2.66 billion, a year-on-year increase of 7.23% [9][12]. - The forecast for revenue from 2024 to 2026 is RMB 52.319 billion, RMB 57.702 billion, and RMB 62.180 billion, respectively, with net profit attributable to shareholders projected at RMB 5.033 billion, RMB 6.601 billion, and RMB 7.685 billion [12][11]. - The company plans to maintain a high dividend payout ratio of 61% for 2023, with a proposed dividend of RMB 0.132 per share [9][12].