Datang Power(601991) 广发证券·2025-04-02 08:11Investment Rating - The report assigns a "Buy-A/Buy-H" rating to the company [4] Core Views - The company has significantly improved its profitability, with a notable increase in ROE and a substantial rise in both the dividend payout ratio and total dividend amount [8][12] - The company achieved a revenue of 123.5 billion RMB in 2024, reflecting a year-on-year growth of 0.9%, while the net profit attributable to shareholders surged by 229.7% to 4.506 billion RMB [12][17] - The company is expected to continue its profitability improvement, with a focus on clean energy development, particularly in wind and solar power [8][61] Summary by Sections Annual Performance Review - The company reported a net profit of 4.506 billion RMB in 2024, a significant increase of 3.1 billion RMB compared to the previous year [12] - The revenue for 2024 was 123.5 billion RMB, with a slight growth of 0.9% year-on-year [12] - The company’s coal power segment turned profitable, generating 2.567 billion RMB, while the hydroelectric segment saw a profit increase of 2.009 billion RMB [17] New Capacity Additions - In 2024, the company added 6.7 GW of new capacity, bringing the total controllable capacity to 79 GW, with clean energy accounting for 40% of the total [48] - The company’s new installations included 2.4 GW of coal power, 2.6 GW of wind power, and 1.7 GW of solar power [48] Profitability Outlook - The company anticipates continued improvement in profitability, driven by a decrease in coal prices and an increase in clean energy investments [61] - The projected net profits for 2025 to 2027 are 5.356 billion RMB, 6.334 billion RMB, and 7.025 billion RMB, respectively [74] Investment Recommendations - The report suggests a target price of 3.76 RMB per share for A-shares and 2.10 HKD per share for H-shares, based on a 13x PE valuation for 2025 [74] - The company is positioned as a leading player in the domestic power sector, benefiting from a diversified energy mix [74]