Hua Yuan Zheng Quan·2024-07-26 06:02Investment Rating - The investment rating for the company has been upgraded to "Buy" [1] Core Views - The company is recognized for its long-term value as a renewable energy operator, especially after a significant stake increase by a state-owned insurance company [5] - The company is part of the National Energy Group's renewable energy platform, with plans to add 30GW of new energy capacity during the 14th Five-Year Plan [5] - The current valuation of the company is at historical lows, with projected net profits for 2024-2026 being 6.73 billion, 7.44 billion, and 8.09 billion RMB respectively, indicating a positive outlook [6] Summary by Sections Investment Highlights - A state-owned insurance company increased its stake in the company to 5%, reflecting deep recognition of its value [5] - The company has a strong backing from the National Energy Group, which has committed to injecting significant renewable energy assets [5] Financial Projections - The company’s projected net profits for 2024, 2025, and 2026 are 6.73 billion, 7.44 billion, and 8.09 billion RMB respectively, with corresponding PE ratios of 8, 7, and 7 [6] - The company’s revenue is expected to grow from 37.64 billion RMB in 2023 to 40.75 billion RMB in 2024, reflecting an 8.27% year-on-year growth [7] Market Context - The renewable energy sector is expected to benefit from national policies supporting long-term investments, aligning with the dual carbon strategy [6] - The company is positioned as a benchmark in the green energy sector, with its performance closely tied to industry developments [6]