GF SECURITIES·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 18.76 CNY per share and 8.27 HKD per H-share based on a 20x PE valuation for 2024 [3][56]. Core Insights - The company's operating profit remains stable despite significant asset impairment impacting performance. In 2023, the company achieved revenue of 37.642 billion CNY (down 5.6% year-on-year) and a net profit attributable to shareholders of 6.249 billion CNY (up 22.3% year-on-year) [1][9]. - The company added 4.5 GW of new renewable energy capacity in 2023, with total generation increasing by 7.9%. Wind power generation rose by 5.2% due to new installations, while solar power saw a significant increase of 160% [1][36]. - The company has a robust growth outlook, with plans to start 10 GW of new energy projects in 2024 and a total of 22.75 GW of development indicators acquired in 2023 [1][50]. Summary by Sections 1. Operating Profit Stability and Asset Impairment Impact - The company reported a stable total operating profit despite a 49.5% decline in revenue from coal sales. The wind and solar segments showed revenue growth of 1.1% and 114.4%, respectively [1][9]. - Financial expenses decreased by 4.0 billion CNY, while investment income increased by 4.9 billion CNY, contributing to profit growth [1][9]. 2. New Installations and Generation Growth - In 2023, the company added 4.5 GW of new capacity, bringing total controlled capacity to 35.6 GW, with wind power accounting for 27.75 GW [1][36]. - The total electricity generation reached 762.26 billion kWh, with wind power contributing 613.53 billion kWh [1][39]. 3. Resource Reserves and Growth Potential - The company secured 54 GW of new resource reserves in 2023, with a focus on wind and solar energy. The company plans to accelerate installation growth due to favorable resource locations [1][50]. - The company aims to start 10 GW of new energy projects in 2024, with expectations of significant growth in the coming years [1][50]. 4. Profit Forecast and Investment Recommendations - The forecast for net profit attributable to shareholders for 2024-2026 is 7.86 billion CNY, 8.93 billion CNY, and 10.07 billion CNY, respectively, with corresponding PE ratios of 19.8, 17.4, and 15.5 [1][56]. - The report emphasizes the company's growth potential in renewable energy installations and maintains a "Buy" rating based on favorable valuations compared to peers [1][56].