Investment Rating - The report upgrades the investment rating of the company to "Buy" from "Neutral" [1][5]. Core Insights - The company's stock price has dropped significantly, making its valuation attractive. The unexpected interest rate cut by the Federal Reserve is expected to lower borrowing costs, positively impacting profitability [1]. - The price of photovoltaic modules continues to hit new lows, which is beneficial for the return on new projects due to reduced investment costs [1]. - The report raises the earnings forecast for 2024-2026 by 2%/3%/4% and maintains a target price of HKD 1.02, reflecting a potential upside of 18.6% from the current price [1][5]. Financial Summary - Revenue (Million HKD): 2022: 2,315, 2023: 2,517, 2024E: 2,459, 2025E: 2,786, 2026E: 3,165 [2][6]. - Net Profit (Million HKD): 2022: 971, 2023: 993, 2024E: 838, 2025E: 1,024, 2026E: 1,211 [2][6]. - Earnings Per Share (HKD): 2022: 0.13, 2023: 0.12, 2024E: 0.10, 2025E: 0.12, 2026E: 0.15 [2][6]. - Dividend Yield (%): 2022: 17.6, 2023: 7.0, 2024E: 5.9, 2025E: 7.2, 2026E: 8.5 [2][6]. Key Business Metrics - New Installed Capacity (MW): 2024E: 700, 2025E: 1,000, 2026E: 1,200 [4]. - Average Tax-Inclusive Electricity Price (RMB/kWh): 2024E: 0.61, 2025E: 0.57, 2026E: 0.54 [4]. - Gross Margin (%): 2024E: 63.0, 2025E: 63.0, 2026E: 63.0 [4].
信义能源：股价大跌后估值吸引，美元超预期降息利好借款利率，上调至买入