中国电力：启动重大资产重组 打造清洁能源旗舰

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its stock performance [3][6]. Core Insights - The company is initiating a significant asset restructuring, aiming to enhance its position as a clean energy leader by acquiring shares in Yuanda Environmental through its hydroelectric assets [3]. - The restructuring aligns with national policies promoting state-owned enterprise reforms and capital market improvements, capitalizing on a favorable regulatory environment [3]. - Following the restructuring, the company will establish a red-chip structure, with Yuanda Environmental serving as the platform for integrating hydroelectric assets, while the company will operate as a comprehensive clean energy platform [3][4]. - The company’s valuation is currently at a low price-to-book (PB) ratio of 0.76, suggesting potential undervaluation in the market, especially in light of recent capital increases from institutional investors [4][3]. - The earnings forecast for the company remains strong, with projected net profits of 48.1 billion, 56.6 billion, and 64.1 billion RMB for 2024, 2025, and 2026 respectively, corresponding to price-to-earnings (PE) ratios of 10, 8, and 7 [4]. Summary by Sections Company Overview - The company is part of the State Power Investment Corporation and is focused on integrating its coal, hydro, and renewable energy assets to create a leading clean energy platform [3][4]. Financial Data - As of September 30, 2024, the company's closing price is HKD 3.71, with a market capitalization of HKD 459 billion and a PB ratio of 0.76 [2]. - The total assets amount to 325,581 million RMB, with net assets of 100,271 million RMB, translating to a net asset value per share of 4.46 RMB [2]. Earnings Forecast - The company’s total revenue is projected to grow from 44,262 million RMB in 2023 to 58,543 million RMB by 2026, with a compound annual growth rate (CAGR) of approximately 7.2% [5]. - The net profit is expected to increase significantly, with a forecasted growth rate of 80.8% in 2024 compared to 2023 [5].