CHINA POWER(HK:02380) Hua Yuan Zheng Quan·2024-04-25 10:02Investment Rating - The report maintains a "Buy" rating for the company [2][3] Core Views - The company's net profit for 2023 was 2.66 billion RMB, a year-on-year increase of 7.23%, slightly below the expected 3.2 billion RMB. The dividend per share is 0.132 RMB, resulting in a current dividend yield of 4.4% [2] - The primary reason for the underperformance was historically low water levels, leading to a rare loss in the hydropower segment, which reported a loss of 826 million RMB in 2023 compared to a profit of 261 million RMB in 2022 [2] - The coal power segment exceeded expectations, achieving a profit of 1.315 billion RMB, benefiting from the divestment of underperforming assets [2] - The renewable energy segment saw rapid expansion, with wind power capacity reaching 15.149 million kW and solar power capacity at 12.016 million kW by the end of 2023, resulting in net profits of 3.116 billion RMB and 1.504 billion RMB respectively [2] - The company is expected to add approximately 4.5 million kW of wind power and 2.5 million kW of solar power in 2024, primarily focusing on wind power to ensure project profitability [2][3] Summary by Sections Financial Performance - The company reported total revenue of 44.262 billion RMB in 2023, with a projected increase to 56.189 billion RMB in 2024 [4] - The net profit forecast for 2024 and 2025 is 4.801 billion RMB and 6.930 billion RMB respectively, with a projected PE ratio of 8 and 5 for these years [4] Strategic Positioning - The company is positioned as a flagship platform within the State Power Investment Corporation, with a clear alignment between the group's strategy and the company's development direction [3] - The dual carbon strategy is expected to resonate with the national reform context, enhancing the company's growth prospects [3]