Investment Rating - The report maintains a "Buy" rating for Huaneng International Power Co., Ltd. with a target price of HKD 5.45 [7][4]. Core Views - The company's 2024 revenue is expected to decrease by 3.5% year-on-year to RMB 245.55 billion, while equity profit is projected to increase by 21.9% to RMB 10.185 billion, slightly below expectations due to higher domestic coal power costs in Q4 2024 [1][2]. - The company plans to add 9.42 GW of new renewable energy capacity in 2024 and aims for an additional 10 GW in 2025, which is expected to drive sustainable growth [1][3]. - The dividend for 2024 is set at RMB 0.27 per share, with a payout ratio of 58.78%, resulting in a dividend yield of 6.4% based on the closing price on March 26 [1][4]. Financial Performance Summary - In 2024, the total profit from domestic coal power is expected to recover to 1.9 cents per kWh, despite a decrease in the tax-inclusive electricity price by 1.09 cents per kWh [2]. - The company’s total profit from wind and solar projects in 2024 is projected to be RMB 94.97 billion, slightly above the forecast of RMB 84.26 billion [3]. - The report forecasts a decrease in the electricity price for thermal power by 3.9% and 4.0% for 2025 and 2026, respectively, leading to a downward adjustment of equity profit for 2025 and 2026 [4][6]. Valuation Metrics - The report estimates the company's 2025 book value per share (BPS) to be RMB 4.57, with a price-to-book (PB) ratio of 1.1x based on 2025 estimates, which is higher than its historical average [4][6]. - The expected earnings per share (EPS) for 2024 is RMB 0.65, with a projected increase to RMB 0.79 in 2025 [6][21].
华能国际电力股份（00902）：新能源表现略超预期，2024年股息率高达6.4%