Investment Rating - The report maintains a neutral rating for 大唐新能源 (1798 HK) with a target price adjusted to HKD 1.92, indicating a potential downside of 5.4% from the current price of HKD 2.03 [2][10]. Core Views - The company's first interim dividend declaration of HKD 0.03 per share, with a payout ratio of 14%, was a pleasant surprise despite a 13.8% year-on-year decline in net profit to RMB 1.54 billion, which was slightly below expectations [1][2]. - The company aims to maintain its annual new installed capacity target of 2 GW, with 133 MW of wind and 3 MW of solar capacity added in the first half of the year [1][2]. - The management highlighted that the wind power utilization hours were affected by wind speed and power restrictions, with significant curtailment rates observed in regions like Inner Mongolia and Gansu [1][2]. Summary by Sections Financial Performance - The company's revenue for the first half of 2023 was RMB 6.976 billion, with a slight decrease in net profit compared to the previous year [6][11]. - The average on-grid electricity price decreased by RMB 0.2524 per kWh, although it was still above expectations by approximately 1% [1][2]. Installed Capacity and Development - The total installed capacity is projected to reach 17,218 MW by 2024, with significant contributions from both wind and solar energy [7][11]. - The management reported ongoing projects totaling 3.09 GW, with a focus on large-scale projects in regions such as Xinjiang and Gansu [1][2]. Dividend Policy and Financial Ratios - The net debt-to-equity ratio improved by 13 percentage points year-on-year to 126%, with expectations for further reduction in the coming year [1][2]. - The report indicates that while there is financial capacity for increased dividends or accelerated installation plans, management has not committed to a higher payout ratio [1][2].
大唐新能源：全年派息政策及装机进度有待更大突破