Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 1.30 per share, indicating a potential upside of 23% from the current price of HKD 1.06 [6][12]. Core Insights - The company plans to list a solar power plant REIT, which will activate existing assets and alleviate cash flow pressure due to delayed subsidies. This move is expected to lower financial leverage and financing costs through equity financing [3][9]. - Recent electricity pricing policies are anticipated to stabilize the revenue from existing projects, while green electricity direct connection initiatives will promote local consumption of renewable energy [4][10]. - The company's financing costs are on a downward trend, with a significant shift from HKD loans to lower-interest RMB loans, expected to further decrease to 3% by 2025. The company has sufficient power station reserves for acquisition [5][11]. Financial Summary - For FY2023, the company reported revenues of RMB 2,281 million, with a projected increase to RMB 2,500 million in FY2025, reflecting a growth rate of 2.4% [7][18]. - The net profit attributable to shareholders is expected to recover from RMB 791 million in FY2024 to RMB 940 million in FY2025, marking an 18.9% increase [7][18]. - The basic earnings per share are projected to be 11.23 cents in FY2025, with a corresponding PE ratio of 8.6 at the current price [7][18].
信义能源（03868）：REIT上市有利改善现金流，降低融资成本