CHINA RES POWER(00836) 国元国际控股·2025-02-25 16:40Investment 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 Views - The company experienced a 4.7% year-on-year decline in electricity sales in January 2025, primarily due to the impact of the Spring Festival. However, the overall electricity sales for 2024 are expected to grow by 7.4% year-on-year, indicating stable performance [3][4][9]. - The report highlights that the company's performance is supported by favorable coal and electricity price dynamics, with expectations of stable growth in profitability and operational performance [5][10]. - The report emphasizes the strength of the company's renewable energy assets, particularly wind power, which is expected to remain resilient amid market competition [5][10]. Summary by Sections Sales Performance - In January 2025, the company's electricity sales reached 18.02 million MWh, down 4.7% year-on-year, with thermal power sales declining by 11% and renewable energy sources like wind and solar showing significant growth [3][8]. - For the full year 2024, total electricity sales are projected to be 207.637 billion kWh, a 7.4% increase from the previous year, with notable growth in solar (141.5%) and hydro (15.2%) power sales [4][9]. Financial Outlook - The report projects stable revenue growth, with expected revenues of HKD 107.531 billion in 2025, reflecting a 2.6% increase from 2024 [7][15]. - The net profit attributable to shareholders is forecasted to reach HKD 16.221 billion in 2025, representing a 12.8% increase from 2024 [7][15]. Valuation Metrics - The updated target price of HKD 23.6 corresponds to a price-to-earnings (PE) ratio of 8x for 2024 and 7.5x for 2025, indicating a favorable valuation compared to industry peers [6][11].