Investment Rating - The report maintains a "Buy" rating for the company [3][9]. Core Views - The company achieved a revenue of HKD 25.17 billion in 2023, representing a year-on-year growth of 8.7%, while the net profit attributable to shareholders was HKD 9.93 billion, up 2.2% year-on-year [3]. - The company’s power generation increased by 19.6% year-on-year, with a slight decline in gross margin by 2.7 percentage points to 67.9% due to accounting adjustments and a decrease in solar utilization hours [3]. - The company holds a total power station capacity of 3.65 GW, with over half (52.8%) being grid-parity projects, which is a 10 percentage point increase from 2021 [3]. - The company plans to acquire 700 to 1000 MW of large-scale grid-parity solar projects in 2024, with a recent acquisition of a 790 MW solar power station from Xinyi Solar [3]. - The financial expense ratio increased to 14.1%, up 2.5 percentage points year-on-year, primarily due to rising offshore borrowing costs [3]. - The company’s net debt ratio stands at 42.3%, significantly better than the industry average, and plans to increase borrowing from domestic banks to reduce financing costs [3]. Summary by Sections Financial Performance - Revenue for 2023 was HKD 25.17 billion, an increase of 8.7% from 2022 [6]. - Net profit attributable to shareholders was HKD 9.93 billion, reflecting a 2.2% increase year-on-year [6]. - The gross margin for 2023 was 67.9%, down from the previous year [6]. Project and Capacity Analysis - The total power station capacity reached 3.65 GW, a 21% increase from 2022 [3]. - Grid-parity projects now account for 52.8% of the total capacity, up from 42.8% in 2021 [3]. Profit Forecast and Valuation - Adjusted net profit forecasts for 2024 and 2025 are HKD 12.35 billion and HKD 14.24 billion, respectively, with a projected net profit of HKD 15.38 billion for 2026 [3]. - The expected dividend per share for 2024 is approximately HKD 0.065, with current price-to-earnings (P/E), price-to-book (P/B), and dividend yield ratios at 7.35x, 0.62x, and 6%, respectively [3].
平价项目占比过半，拟通过境内融资降本