Zhejiang Provincial New Energy(SH:600032) Minsheng Securities·2024-05-02 02:00Investment Rating - The report maintains a "Cautious Recommendation" rating for the company, with a target price of 9.00 CNY based on a PE of 20.0 for 2024 [3][10]. Core Views - The company reported a revenue of 4.523 billion CNY in 2023, a decrease of 1.62% year-on-year, while the net profit attributable to shareholders was 627 million CNY, down 19.16% year-on-year. However, the non-recurring net profit increased by 11.47% year-on-year to 601 million CNY [1]. - In Q1 2024, the company achieved a revenue of 1.173 billion CNY, representing a year-on-year growth of 12.10%, and a net profit of 173 million CNY, up 42.88% year-on-year [1]. - The company has seen a positive turnaround in hydropower output and significant growth in wind and solar installations, which are expected to drive high growth in 2024 [1][2]. Summary by Sections Financial Performance - The company’s total revenue for 2023 was 4,523 million CNY, with a projected increase to 5,618 million CNY in 2024, reflecting a growth rate of 24.2% [2][7]. - The net profit attributable to shareholders is expected to rise from 627 million CNY in 2023 to 1,083 million CNY in 2024, indicating a growth rate of 72.6% [2][7]. - The earnings per share (EPS) is projected to increase from 0.26 CNY in 2023 to 0.45 CNY in 2024 [2][7]. Operational Highlights - The company added a total of 875,700 kW of new capacity in 2023, with cumulative installed capacity reaching 5,253,800 kW. The new installations included 147,000 kW of land wind, 300,000 kW of sea wind, and 429,000 kW of solar power [1]. - In Q1 2024, the company generated 2.228 billion kWh of electricity, a year-on-year increase of 22.5%, with significant contributions from hydropower and sea wind [1]. Future Outlook - The company is expected to benefit from the acceleration of offshore wind development in Zhejiang province, with a successful bid for a 750,000 kW offshore wind project [1]. - A mid-year dividend plan is anticipated, with cash dividends not less than 10% of the net profit attributable to shareholders for the corresponding period [1].