CTGR(SH:600905) Huachuang Securities·2024-09-10 08:38Investment Rating - The report assigns a "Recommended" rating to the company, with a target price of 4.91 CNY, down from the previous estimate [2]. Core Views - The company's performance in H1 2024 has been under pressure, with net profit attributable to shareholders decreasing by 10.58% year-on-year to 4.038 billion CNY, despite a 28.58% increase in power generation due to new project launches [2]. - The installed capacity reached 41.37 million kW, with wind and solar power accounting for 19.62 million kW and 20.58 million kW, respectively. The market shares for wind and solar are 4.20% and 2.88% [2]. - The company has significant projects under construction, with a total planned installed capacity of 23.477 million kW, which includes 5.5114 million kW for wind, 13.3456 million kW for solar, and 3.6 million kW for pumped storage [2]. - Short-term green electricity revenues are under pressure, but there is an expectation for long-term improvement in profitability as the market stabilizes [2]. Financial Summary - The company's main revenue for 2023 is projected at 26.485 billion CNY, with expected growth rates of 11.2% in 2023, 22.5% in 2024, 11.4% in 2025, and 10.2% in 2026 [3]. - Net profit attributable to shareholders is forecasted to be 7.181 billion CNY in 2023, with growth rates of 0.4% in 2023, 11.8% in 2024, 7.8% in 2025, and 13.5% in 2026 [3]. - Earnings per share (EPS) is expected to increase from 0.25 CNY in 2023 to 0.34 CNY in 2026 [3]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 16 in 2023 to 12 in 2026, indicating a potential valuation improvement over time [3].