中国电力：年内首次举牌，长期价值突出

Investment Rating - The report maintains a "Buy" rating for China Power (2380.HK) [7] Core Views - Recent increase in shareholding by CITIC Financial Assets, now holding approximately 619 million shares, representing 5% of the company, indicates strong confidence in the company's long-term value [5][6] - The major shareholder has also significantly increased their stake, raising it by 2.61% in 2023, reflecting a commitment to the company's long-term development strategy [5][6] - The company's operational performance has shown remarkable improvement, with electricity sales reaching a historical high, and a 33.45% year-on-year increase in total electricity sales to 40.817 billion kWh in the first four months of 2024 [5][6] - The company is expected to benefit from a favorable coal supply environment, with coal prices decreasing by 20.15% year-on-year, which will alleviate cost pressures on thermal power operations [5][6] - The company has a strong dividend commitment, with a payout ratio of 61.38% in 2023, enhancing its investment appeal [5][6] Summary by Sections Shareholding Changes - CITIC Financial Assets has become the first major shareholder above 5% in 2023, reflecting confidence in the company's value [5][6] - The major shareholder's stake increased to 63.67% by the end of 2023, up 2.61 percentage points from the end of 2022 [5][6] Operational Performance - The company achieved a record high in electricity sales, with significant growth in clean energy generation [5][6] - The first four months of 2024 saw total electricity sales of 40.817 billion kWh, a 33.45% increase year-on-year [5][6] - Clean energy sales, including hydropower, wind, and solar, showed substantial growth rates of 79.64%, 52.10%, and 88.03% respectively [5][6] Future Growth Potential - The company aims for over 90% of its installed capacity to come from clean energy by 2025, necessitating the addition of over 38 million kW of clean energy capacity [6] - The company has acquired 9.2683 million kW of new energy assets, reinforcing its position as a key player in the clean energy sector [6] Financial Projections - Expected earnings for 2024-2026 are projected at 5.005 billion, 6.048 billion, and 7.159 billion yuan, with corresponding EPS of 0.40, 0.49, and 0.58 yuan [6]