CHINA RES POWER(00836) 国元国际·2025-02-25 03:23Investment Rating - The report maintains a "Buy" rating for China Resources Power (0836.HK) with a target price updated to HKD 23.6, indicating a potential upside of 31% from the current price of HKD 18 [6][11]. Core Insights - The company's electricity sales volume in January 2025 decreased by 4.7% year-on-year, primarily due to the impact of the Spring Festival. The total sales volume reached 18.02 million MWh, with thermal power sales down by 11%, while wind, solar, and hydro power sales saw increases of 14.1%, 45.4%, and 18.9% respectively [3][8]. - For the full year 2024, the company expects a 7.4% year-on-year increase in electricity sales volume, totaling 207.637 billion kWh. Thermal power sales are projected to grow by 4.0%, wind power by 10.5%, hydro power by 15.2%, and solar power by 141.5% [4][9]. - The report suggests that the company's performance is supported by favorable coal and electricity price dynamics, with a potential decline in coal prices and the implementation of long-term electricity pricing agreements, which will help stabilize thermal power profitability [5][10]. Summary by Sections Sales Performance - January 2025 electricity sales volume was 18.02 million MWh, down 4.7% year-on-year due to the Spring Festival [3][8]. - Full year 2024 electricity sales volume is expected to reach 207.637 billion kWh, up 7.4% year-on-year [4][9]. Financial Outlook - The report anticipates stable growth in the company's performance, with a focus on the impact of coal prices and electricity pricing policies [5][10]. - The updated target price of HKD 23.6 corresponds to a PE ratio of 8 times for 2024 and 7.5 times for 2025, reflecting a strong valuation relative to current market conditions [6][11].