CHINA RES POWER(HK:00836) Tianfeng Securities·2024-09-02 06:03Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Insights - The company's profit attributable to equity holders for the first half of 2024 was HKD 9.363 billion, representing a year-on-year increase of 38.91%. The core profit attributable to equity holders was HKD 8.271 billion, up 23.81% year-on-year [1]. - The company has made significant progress in its clean energy transition, with a total of 0.93 GW of new wind and solar capacity connected to the grid in the first half of the year. As of the end of June, the company had 19.12 GW of operational wind capacity and 5 GW of operational solar capacity [2]. - Despite a 6.2% increase in electricity sales volume to approximately 98.2 billion kWh, the company's revenue slightly decreased by 0.7% year-on-year to HKD 51.12 billion due to a decline in electricity prices [3][4]. Summary by Sections Financial Performance - The company's fuel costs decreased by 11.0% year-on-year to HKD 24.748 billion, influenced by a 10.6% drop in the price of benchmark coal. The core profit contribution from renewable energy was HKD 5.556 billion, down 6.69% year-on-year, while the core profit from thermal power significantly improved to HKD 2.715 billion, corresponding to a profit per kWh of HKD 0.038 [4]. Profit Forecast and Valuation - The company forecasts net profit attributable to shareholders for 2024-2026 to be HKD 15.8 billion, HKD 17.5 billion, and HKD 19.7 billion, respectively, with corresponding price-to-earnings ratios of 6.5, 5.9, and 5.2 times [5].