POWERCHINA Ltd(SH:601669) KAIYUAN SECURITIES·2025-04-30 08:23Investment Rating - The investment rating for China Electric Power Construction (601669.SH) is maintained at "Buy" [1][5][6] Core Views - The company reported a year-on-year revenue growth, with a strong performance in its renewable energy business. However, the net profit attributable to shareholders declined due to increased impairment provisions. The gross margin remained stable, and the company is focusing on building a second growth curve around renewable energy while solidifying its traditional infrastructure business [5][6][7]. Financial Performance Summary - In 2024, the company achieved a revenue of 634.55 billion yuan, representing a year-on-year increase of 4.05%. The net profit attributable to shareholders was 12.01 billion yuan, down 7.21% year-on-year. The gross margin and net margin were 13.19% and 2.50%, respectively, showing slight declines of 0.04 percentage points and 0.31 percentage points year-on-year [6][8]. - The company’s new signed orders totaled 12,706.91 billion yuan in 2024, an increase of 11.19% year-on-year. The energy and power sector saw significant growth, with orders increasing by 23.68% [7][8]. Profit Forecast - The profit forecasts for 2025 to 2027 are as follows: net profit attributable to shareholders is expected to be 14.13 billion yuan in 2025, 15.21 billion yuan in 2026, and 15.95 billion yuan in 2027. The earnings per share (EPS) are projected to be 0.82 yuan, 0.88 yuan, and 0.93 yuan for the respective years [5][8]. Valuation Metrics - The current price-to-earnings (P/E) ratios are projected to be 5.9, 5.5, and 5.2 for 2025, 2026, and 2027, respectively. The price-to-book (P/B) ratio is expected to remain at 0.5 for the next three years [5][8]. Business Outlook - The company is expected to benefit from the ongoing development in the energy and power sector, with its renewable energy initiatives likely to contribute positively to future earnings growth. The traditional business is undergoing structural adjustments due to a shrinking scale [5][6][7].