Investment Rating - The report assigns a "Hold" rating to the company with a target price of HKD 1.00, indicating a potential upside of 14% from the current price of HKD 0.88 [2][8]. Core Insights - The company reported a profit of HKD 395 million for the first half of 2024, a decrease of 30.4% year-on-year, with revenues of HKD 1.218 billion, down 5.4% year-on-year. The decline is attributed to increased market transactions leading to lower settlement prices, higher abandonment rates in certain regions, and depreciation of the RMB against the HKD [5][11]. - The company is expected to face ongoing impacts from power restrictions, particularly in provinces like Hubei, which significantly affects its projects. The company is adopting a more cautious approach to project acquisitions, requiring a specific return on investment before proceeding [6][12]. - The company has increased its proportion of RMB loans, which now exceed 20%, and has seen a decrease in effective loan rates from 6.1% at the end of 2023 to 4.7% as of June 30, 2024. There is an expectation for further declines in loan rates in the second half of the year [7][13]. Financial Summary - For the fiscal year ending December 31, 2024, the company is projected to achieve revenues of HKD 2.801 billion, with a year-on-year growth of 11.2%. Net profit is expected to be HKD 1.094 billion, reflecting a growth of 10.2% [9][17]. - The company maintains a dividend payout ratio of 48% for the first half of 2024, with an interim dividend of HKD 0.023 per share [5][11]. - The company's total assets are projected to grow from HKD 21.504 billion in 2023 to HKD 23.504 billion in 2024, with total liabilities increasing correspondingly [17][18].
信义能源：项目收购更加谨慎，贷款利率持续下行