CHINA LONGYUAN(HK:00916) Shenwan Hongyuan Securities·2025-04-08 05:55Investment Rating - The report maintains a "Buy" rating for Longyuan Power [2][7][17] Core Views - The company reported a revenue of 37.07 billion RMB for 2024, a decrease of 2.6% year-on-year, while the net profit attributable to shareholders was 6.425 billion RMB, a slight increase of 0.2% [7] - The company plans to distribute a final dividend of 0.2278 RMB per share, resulting in a dividend payout ratio of 30% based on the net profit [7] - Longyuan Power's wind power segment faced challenges with a decrease in utilization hours, but the recovery in electricity prices and reduced impairment losses contributed to positive growth in the segment's performance [7] - The photovoltaic segment saw significant growth in installed capacity, but faced challenges due to increased fixed asset impairments [7] - The company is transitioning to a pure renewable energy enterprise by divesting its thermal power assets [7] - Longyuan Power plans to start new renewable energy projects with a total capacity of 5GW in 2025, indicating strong growth potential [7] Financial Data and Profit Forecast - Revenue projections for Longyuan Power are as follows: 35.703 billion RMB in 2025, 38.176 billion RMB in 2026, and 40.332 billion RMB in 2027, with respective growth rates of -4%, 7%, and 6% [6] - The net profit attributable to shareholders is forecasted to be 7.132 billion RMB in 2025, 7.536 billion RMB in 2026, and 8.046 billion RMB in 2027, with growth rates of 11%, 6%, and 7% respectively [6] - The earnings per share are projected to be 0.85 RMB in 2025, 0.90 RMB in 2026, and 0.96 RMB in 2027 [6] - The price-to-earnings ratio is expected to decrease from 7.1 in 2023 to 5.8 in 2027, indicating a potentially undervalued stock [6]