CHINA LONGYUAN(HK:00916) BOCOM International·2025-04-01 10:28Investment Rating - The report assigns a "Buy" rating for the company, Longyuan Power (916 HK), with a target price of HKD 8.00, indicating a potential upside of 28.4% from the current price of HKD 6.23 [1][2][16]. Core Insights - The 2024 wind power feed-in tariff is expected to outperform expectations, and the company's three-year dividend policy is anticipated to be well-received by investors [2][7]. - The company is projected to see a 2.9% increase in net profit for 2024, reaching RMB 6.38 billion, which is 4% higher than previous expectations [7]. - The report highlights that the company's minority interest increased significantly, reflecting a higher profit contribution from projects in the southeastern region [7]. Financial Overview - Revenue projections for the company are as follows: RMB 37,638 million in 2023, RMB 31,370 million in 2024, and expected growth to RMB 34,663 million in 2025 [6][17]. - Net profit is forecasted to grow from RMB 6,355 million in 2023 to RMB 6,425 million in 2024, and further to RMB 6,923 million in 2025 [6][17]. - The company maintains a dividend payout ratio of 30%, with the final dividend for 2024 expected to increase by 2% to RMB 0.2278 per share [7][17]. Operational Data - The company plans to add a total of 6 GW of new wind and solar capacity in 2025, with a focus on controlling capital expenditures, which are expected to decrease by 18% to RMB 238 billion [7][12]. - The total installed capacity is projected to grow from 35,594 MW in 2023 to 41,143 MW in 2024, and further to 47,143 MW in 2025 [12][17]. - The report indicates that the company’s financial metrics, such as the price-to-earnings ratio, are expected to improve, with a forecasted PE ratio of 9 times for 2025 [7][17].