Investment Rating - The investment rating for the company is maintained, with a 2025 PE of 8.1 times [6][9]. Core Viewpoints - The company reported better-than-expected performance, with a 7% year-on-year revenue increase to 2.44 billion RMB in 2024, driven by the contribution from newly acquired photovoltaic power stations [2][6]. - Despite the revenue growth, net profit decreased by 12% year-on-year to 790 million RMB due to power restrictions and declining electricity prices [2][6]. - The company plans to distribute a final dividend of 2.7 HKD cents per share, resulting in a payout ratio of 49% and a dividend yield of approximately 5.1% [2][6]. Summary by Sections Financial Performance - In 2024, the company's revenue increased to 2.44 billion RMB, primarily due to the contribution from 636.5 MW and 860 MW photovoltaic power stations acquired in 2023 and 2024, respectively [2][6]. - The gross margin decreased from 67.9% to 65.6%, and the net margin fell from 39.5% to 32.4% [2][6]. - The company’s net profit for 2024 was 790 million RMB, reflecting a 12% decline compared to the previous year [2][6]. Project Portfolio - The company mainly holds grid-parity projects, which are less affected by subsidies. By the end of 2024, it operated 46 large solar power stations with a total installed capacity of 4,510.5 MW, of which 2,776.5 MW (61.6%) are grid-parity projects [3][6]. - The company has a project reserve of 1.2 GW from its parent company, with 890 MW being grid-parity projects, indicating potential for future acquisitions [3][6]. Financial Management - The company has improved its financial management, with the proportion of RMB-denominated loans increasing to 80% and financial costs decreasing to 3.5% in 2024, down from 6.1% in 2023 [4][6]. - The management's efforts in loan restructuring and dividend distribution have been noted as impressive [4][6]. Market Outlook - The outlook for 2025 suggests potential improvements in the impact of power restrictions and electricity price declines, particularly in regions with high electricity demand such as Anhui and Hubei [5][6]. - The company is also expanding into overseas markets, with plans to commence construction on a 100 MW photovoltaic power station in Malaysia within the year [5][6].
信义能源：业绩好于预期，维持稳定派息-20250311