POWERCHINA Ltd(SH:601669) EBSCN·2025-05-05 15:21Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 633.68 billion yuan in 2024, reflecting a year-on-year growth of 4.1%, while the net profit attributable to shareholders decreased by 7.2% to 12.02 billion yuan [5][10] - The company continues to see stable growth in its core business, particularly in water conservancy, hydropower, and renewable energy sectors, with significant increases in solar project capacity [6][8] - New contract signings increased by 11.2% to 1,270.69 billion yuan in 2024, with notable growth in energy and infrastructure contracts [7] Summary by Sections Revenue and Profitability - In 2024, the company reported operating revenue of 633.68 billion yuan, with a net profit of 12.02 billion yuan, and a decrease in net profit margin to 2.5% [5][6] - The gross margin for 2024 was 13.2%, slightly down from the previous year, while the gross margin for the first quarter of 2025 was 10.8% [6][10] Contract and Project Growth - The company secured new contracts worth 1,270.69 billion yuan in 2024, with energy and infrastructure contracts showing strong growth [7] - The company emphasized the quality of contracts, with high-quality orders accounting for 44.2% of new contracts [7] Capacity Expansion - The company added 204.2 MW of wind power, 404.37 MW of solar power, and 0.18 MW of hydropower capacity in 2024, leading to a total installed capacity of 33,128 MW, a 22% increase year-on-year [8] - The company is actively developing new energy projects, with significant contributions to revenue and investment from these sectors [8] Cash Flow and Dividends - The company reported a net operating cash inflow of 24.55 billion yuan in 2024, an increase of 22.8 billion yuan from the previous year [9] - The proposed dividend for 2024 is 1.2695 yuan per share, maintaining a payout ratio of 18.2% [10] Financial Forecasts - The company has adjusted its net profit forecasts for 2025 and 2026 to 12.70 billion yuan and 13.40 billion yuan, respectively, reflecting a downward revision of 13% and 18% [10]