JEP(000875) 华泰证券·2024-12-12 08:20Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 6.73 [1]. Core Views - The company has completed a private placement raising RMB 4.185 billion, which is expected to reduce the debt-to-asset ratio and financial expenses, leading to an upward revision of net profit forecasts for 2024-2026 [1][2]. - The high yield projects are anticipated to hedge against potential risks from price fluctuations in the electricity market, with expectations for high-quality growth in green electricity capacity [1][3]. - The improvement in cash flow is expected to enhance the company's financial reserves, supporting ongoing growth [1]. Summary by Sections Investment Rating - The company is rated as "Buy" with a target price of RMB 6.73 [1]. Financial Performance - The company raised RMB 4.185 billion through a private placement, which will help reduce the debt-to-asset ratio from 74% in September 2024 to an estimated 63% by 2026 [2]. - Financial expenses, which accounted for 12%-14% of total operating costs from 2021 to 2023, are expected to decrease as the debt ratio declines, thereby enhancing profitability [2]. Project Returns - The internal rate of return (IRR) for the integrated wind-solar hydrogen ammonia project is expected to exceed the company's estimated 4.57%, with other projects showing IRRs between 10.91% and 25.35% [3]. - The company's renewable energy installed capacity reached 10.83 GW by September 2024, with new projects adding 1.4 GW, representing 13% of existing capacity [3]. - The annual growth rate of green electricity capacity is projected to be no less than 2 GW from 2024 to 2025 [3]. Profit Forecast Adjustments - The net profit forecasts for 2024-2026 have been revised upward by 1.7%, 3.0%, and 2.5% to RMB 1.437 billion, RMB 1.744 billion, and RMB 2.051 billion respectively [4]. - The book value per share (BPS) has been adjusted to RMB 4.82, RMB 5.18, and RMB 5.60 for the years 2024-2026 [4].