CHINA RES POWER(00836) 长江证券·2025-03-25 09:41Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - In 2024, the company's net profit reached HKD 14.388 billion, representing a year-on-year growth of 30.8% compared to HKD 11.003 billion in 2023 [5][2]. - The core business profit of the thermal power segment increased by 28.44% due to a steady decline in fuel costs, while the renewable energy segment saw a core business profit decrease of 5.11% [2][6]. - The company plans to expand its renewable energy capacity significantly, with a projected capital expenditure of HKD 56.8 billion in 2025, of which HKD 42 billion is allocated for renewable energy projects [6][2]. Summary by Sections Financial Performance - The thermal power sales volume increased by 4.00% in 2024, but the average on-grid electricity price for coal-fired power plants decreased by 2.7%, leading to a slight decline in sales revenue to HKD 71.901 billion, down 0.45% year-on-year [6][2]. - The average coal price for the company in 2024 was RMB 922.1 per ton, a decrease of 6.6% year-on-year, contributing to a 4.2% decline in fuel costs [6][2]. - The net profit from the thermal power business surged by 82.87% to HKD 5.221 billion, aided by the acquisition of the Guangxi Hezhou project, which generated a profit of HKD 0.876 billion [6][2]. Renewable Energy Segment - The company added 3.646 million kW of wind power and 4.142 million kW of solar power in 2024, with total wind power capacity reaching 24.313 million kW and solar power capacity reaching 9.433 million kW, marking year-on-year growth of 30.59% and 174.06%, respectively [6][2]. - Despite a decrease in average utilization hours for wind and solar power, the sales volume for wind and solar increased by 10.5% and 141.5%, respectively [6][2]. - The core business profit for renewable energy was HKD 9.228 billion, down 5.11%, but net profit increased by 11.72% to HKD 9.029 billion due to a significant reduction in impairment losses [6][2]. Dividend and Valuation - The company declared a total dividend of HKD 1.19 per share for 2024, with a payout ratio of 40%, resulting in a dividend yield of 6.26% based on the closing price on March 20 [2][6]. - Future earnings projections for 2025-2027 are estimated at HKD 14.020 billion, HKD 14.391 billion, and HKD 15.207 billion, with corresponding EPS of HKD 2.71, HKD 2.78, and HKD 2.94, and PE ratios of 7.02, 6.84, and 6.47, respectively [6][2].