2024-05-10 03:30Investment Rating - The report initiates coverage with an OUTPERFORM rating for the company, projecting a target price of RMB 21.6 based on a 24x PE for 2024 [14]. Core Insights - The company is a global leader in clean energy operations, maintaining its position as the world's largest wind power operator since 2015. As of the end of 2023, it had a controlled installed capacity of 35.59 million kilowatts, with wind, thermal, and solar power capacities at 27.75 million, 1.88 million, and 5.96 million kilowatts respectively [11][12]. - In 2023, the company generated 76.2 billion kilowatt-hours, representing a year-on-year increase of 7.92%. However, its revenue decreased by 5.6% to RMB 37.64 billion, while net profit attributable to shareholders rose by 22.3% to RMB 6.25 billion [11][12]. - The company has a rich project reserve and is expected to accelerate self-built installations, with plans to start 10GW of new energy projects in 2024 [12][13]. Summary by Sections Financial Performance - The company reported a revenue of RMB 37.64 billion in 2023, down 5.6% year-on-year, while net profit was RMB 6.25 billion, up 22.3% [11][12]. - Impairment provisions for 2023 were approximately RMB 2.1 billion, including RMB 1.2 billion for fixed assets and RMB 640 million for intangible assets [11][12]. Project Development - From 2021 to 2023, the company acquired 59.5GW of new development indicators, ensuring ample project reserves [12]. - The company received RMB 6.42 billion in national subsidies in 2023, which is expected to support its new energy installation targets [12]. Business Integration - The company is undergoing asset restructuring to integrate wind power assets and thermal power businesses, with over 20GW of wind power assets planned for injection [13]. - The thermal power assets are estimated to contribute a net profit of approximately RMB 180 million in 2023, indicating stable operations [13]. Earnings Forecast - The projected EPS for 2024, 2025, and 2026 is RMB 0.90, RMB 1.03, and RMB 1.19 respectively, with an expected average PE of 14 times for comparable companies [14].