Investment Rating - The report maintains a "Buy" rating for Datang Renewable (01798 HK) [2] Core Views - The cautious growth outlook and continuous improvement of the balance sheet are highlighted, with a downward revision of earnings per share (EPS) for 2024 and 2025 by 32.7% and 41.4% to RMB 0.348 and RMB 0.395 respectively, and a forecast of RMB 0.441 for 2026 [1][2] - The target price has been revised down to HK$2.30 from HK$3.10 based on a price-to-earnings (P/E) ratio of 6.0 times for 2024 [1][2] - Despite 2023's earnings falling short of expectations, the cautious expansion strategy has led to an improved balance sheet, with a net profit of RMB 2.753 billion, a decrease of 21.9% year-on-year [1][2] Financial Summary - In 2023, Datang Renewable recorded a total revenue of RMB 12.802 billion, with a net profit of RMB 2.753 billion and an EPS of RMB 0.308, reflecting a 23.6% decline [4] - The company plans to add 2.0 GW of new capacity in 2024, with a total of 1.8 GW under construction as of the end of 2023 [1] - Operating cash flow was robust at RMB 7.140 billion in 2023, with a continued decrease in leverage, as the net debt-to-equity ratio fell by 3.6 percentage points to 169.1% [1][4] Operational Insights - The report emphasizes the potential for upgrading old wind farms, with approximately 1.96 GW of capacity eligible for transformation, expected to reach around 4 GW by the end of 2025 [4] - The management anticipates that upgrading old wind farms could potentially double the installed capacity and triple the power generation [4]
审慎的增长前景，持续改善的资产负债表