GF SECURITIES·2024-04-29 05:02Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with a target price of 18.81 CNY per share and 8.12 HKD per share respectively [3]. Core Insights - The company achieved a stable operation with a slight increase in profit, reporting a 2.5% year-on-year growth in net profit attributable to shareholders for Q1 2024, amounting to 2.393 billion CNY. Revenue for the same period was 9.877 billion CNY, reflecting a 0.1% increase year-on-year. The growth in demand and expansion of installed capacity contributed to increases in thermal and photovoltaic power generation, with revenues from these segments growing by 3.3% and 146.5% respectively. However, the wind power segment saw a revenue decline of 4.7% due to decreased utilization hours and falling electricity prices [1][2]. - The total power generation for Q1 2024 reached 21.225 billion kWh, marking an 8.3% increase year-on-year. This includes wind power generation of 17.031 billion kWh (up 1.4%) and thermal power generation of 2.581 billion kWh (up 11.3%). The significant increase in renewable energy generation was driven by the addition of 3.46 GW of new photovoltaic capacity [1][2]. - The company has accelerated its installed capacity and is considering asset integration within the group, indicating substantial growth potential. In 2023, the company secured development indicators totaling 22.75 GW, with plans to start 10 GW of new energy installations in 2024 and connect 7.5 GW to the grid [1]. - Profit forecasts suggest that net profit attributable to shareholders will reach 7.860 billion CNY in 2024, 8.866 billion CNY in 2025, and 9.919 billion CNY in 2026, with corresponding P/E ratios of 19.1, 16.9, and 15.1 times. The report emphasizes the accelerated growth in wind and solar installations, leading to a broad growth space for the company [1][2].