CHINA RES POWER(00836) 海通证券·2024-09-18 02:43Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Insights - The company reported a revenue of 51.1 billion HKD for the first half of 2024, a year-over-year decrease of 0.7%, while the net profit attributable to shareholders was 9.36 billion HKD, reflecting a year-over-year increase of 38.9% [4] - The core profit from thermal power was 2.72 billion HKD, significantly up from 730 million HKD in the same period last year, driven by a decrease in coal prices and fuel costs [4] - Renewable energy core profit was 5.56 billion HKD, down from 5.95 billion HKD year-over-year, attributed to lower revenue from renewable energy due to unfavorable weather conditions [4] - The company plans to add 40 million kW of renewable energy capacity during the 14th Five-Year Plan period, with a target of 10 million kW in 2024 [4] Financial Performance - The company expects net profits of 15 billion HKD, 17.2 billion HKD, and 18.8 billion HKD for 2024, 2025, and 2026 respectively, with earnings per share projected at 3.13 HKD, 3.57 HKD, and 3.90 HKD [5][9] - The estimated price-to-earnings (PE) ratio for 2024 is between 7-9 times, suggesting a fair value range of 21.91 to 28.17 HKD per share [5] - The company’s revenue is projected to grow slightly from 104.38 billion HKD in 2023 to 104.77 billion HKD in 2024, with a compound annual growth rate of approximately 4.9% through 2026 [6][9] Market Comparison - The company’s current PE ratio is 6.5, which is lower than its peers, indicating a potentially undervalued position in the market [8] - The average PE for comparable companies is around 8.4, suggesting that the company may have room for valuation improvement [8]