POWERCHINA Ltd(SH:601669) GOLDEN SUN SECURITIES·2025-04-28 01:23Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company has shown significant improvement in cash flow, with a notable increase in the profitability share from renewable energy [1][2]. - Despite a decrease in net profit for 2024, the company’s revenue growth remains stable, driven by strong performance in the renewable energy sector [1][4]. Financial Performance Summary - In 2024, the company achieved a revenue of 634.6 billion, a year-on-year increase of 4%, and a net profit attributable to shareholders of 12 billion, a decrease of 7% [1]. - The quarterly breakdown shows Q4 revenue growth accelerating to 208.2 billion, up 10% year-on-year, although impacted by a 4th quarter impairment loss of 4.9 billion [1][2]. - The overall gross margin for 2024 was 13.3%, a slight decline of 0.06 percentage points, primarily due to the impact of overseas business profitability [2]. Business Segment Performance - The engineering contracting business generated revenue of 543.1 billion, up 4.5%, with significant growth in energy and environmental sectors [1][2]. - The renewable energy segment has expanded rapidly, with installed capacity reaching 33 GW by the end of 2024, representing a 37% year-on-year increase [3]. Order Growth and Future Outlook - The company signed new contracts worth 1.2707 trillion in 2024, an increase of 11.2%, with the energy sector contracts growing by 24% [4]. - The report projects net profits for 2025-2027 to be 12.9 billion, 13.6 billion, and 14.1 billion respectively, indicating a growth trajectory [5].