CN GREEN ELECTRICITY(SZ:000537) HTSC·2025-05-05 15:45Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company achieved a revenue of 3.84 billion RMB in 2024, a year-on-year increase of 4%, and a net profit attributable to shareholders of 1.009 billion RMB, up 9.68% year-on-year [1] - The company plans to distribute dividends of 413 million RMB in 2024, with a dividend per share (DPS) of 0.2 RMB and a payout ratio of 41% [1] - The expansion of renewable energy generation capacity is expected to lead to significant growth in power generation by the end of 2025 [2] - Effective cost control measures are anticipated to improve operating profit and cash flow [3] - The target price for the company's stock is set at 11.53 RMB per share, reflecting a price-to-book ratio (PB) of 1.16x for 2025 [4] Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 1.026 billion RMB, a year-on-year increase of 20%, and a net profit of 254 million RMB, up 52% year-on-year [1] - The company’s operating cash flow decreased by 29% year-on-year in 2024, primarily due to delays in green electricity subsidy payments [3] - The company expects a rebound in operating cash flow in 2025 as new projects come online [3] Capacity Expansion - As of the end of 2024, the company had a controllable installed capacity of 18.45 GW, with significant contributions from solar and wind power [2] - The company has 2.83 GW of capacity under construction and 17.56 GW approved for construction, projecting operational capacity to reach 22.5 GW by the end of 2025 [2] Profitability Forecast - The report slightly adjusts the profit forecast for 2025-2026, with net profits expected to be 1.370 billion RMB and 1.617 billion RMB, respectively, reflecting a compound annual growth rate (CAGR) of 22% over three years [4] - The report notes that the company's return on equity (ROE) for 2025 is projected at 6.8%, which is below the industry average of 10.4% [4]