CHINA LONGYUAN(001289) 长江证券·2025-03-31 08:15Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's revenue for 2024 is projected to be CNY 37.07 billion, a decrease of 2.58% year-on-year, while the net profit attributable to shareholders is expected to be CNY 6.345 billion, an increase of 0.66% [5][8]. - The company benefits from a 3.76% year-on-year increase in renewable energy generation due to continuous expansion in installed capacity, despite a decrease in average on-grid prices for solar power [2][11]. - The company has reported a significant reduction in operating costs, down 19.02% year-on-year, which has positively impacted the gross margin, increasing it by 1.19 percentage points to 37.55% [11]. Summary by Sections Revenue and Profitability - In 2024, the company's renewable energy revenue is expected to reach CNY 31.37 billion, reflecting a 6.89% increase year-on-year, while total revenue is projected to decline due to the divestment of thermal power assets [2][11]. - The company recorded an investment income of CNY 912 million, an increase of CNY 892 million year-on-year, contributing to stable performance [11]. Installed Capacity and Generation - The company added 2.6544 million kW of wind power and 4.8263 million kW of solar power in 2024, with total installed capacity reaching 41.1432 million kW by year-end [11]. - Despite a decrease in wind utilization hours by 156 hours year-on-year, the total renewable energy generation reached 68.383 billion kWh, with solar generation increasing by 72.73% [11]. Cost Management - The company’s operating costs for 2024 are expected to be CNY 23.149 billion, significantly lower than the revenue decline, leading to improved profitability metrics [11]. - The company has made provisions for asset impairment totaling CNY 1.109 billion, which has limited overall profit growth but is less than in the previous year [11]. Future Outlook - The company plans to develop 14.72 GW of new projects in 2024, with a steady expansion of installed capacity expected to support continued growth [11]. - Earnings per share (EPS) forecasts for 2025-2027 are projected at CNY 0.88, CNY 0.96, and CNY 1.07, respectively, with corresponding price-to-earnings (PE) ratios of 17.87, 16.35, and 14.62 [11].