Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.8, implying a 47.29% upside from the current price of HKD 2.58 [2][4] Core Views - The company achieved steady growth in net profit, with 2023 net profit increasing by 37.2% YoY to USD 268 million, or 10.6% growth after adjusting for one-time items [1] - Wind power business remained stable, while the decline in revenue was mainly due to lower electricity generation and average tariffs in South Korea, where revenue fell by 16.4% YoY [1] - The company plans to increase its dividend payout ratio to 25% and announced a share buyback program of up to HKD 157 million, which is expected to drive valuation recovery [2] Financial Performance - 2023 revenue declined by 9.8% YoY to USD 2.193 billion, mainly due to the South Korean business [1] - For the first 4 months of 2024, total electricity generation decreased by 3.6% YoY to 6,544.3 GWh, with Chinese wind projects down 4.3% and solar projects up 19.5% [1] - The company's installed capacity reached 9.62 GW by end-2023, with clean and renewable energy accounting for 83.8% of the total [1] Valuation and Forecasts - The report forecasts 2024-2026 revenue of USD 2.419 billion, USD 2.494 billion, and USD 2.570 billion respectively [2] - Net profit is expected to grow to USD 301 million, USD 330 million, and USD 344 million in 2024-2026, with EPS of USD 0.07, USD 0.08, and USD 0.08 [2] - Current valuation multiples are attractive at 4.7x, 4.3x, and 4.1x 2024-2026 P/E [2] Industry and Operations - The company's installed capacity is expected to grow steadily, with annual additions of 500-1,000 MW for wind and solar projects [1] - Clean and renewable energy projects account for 83.8% of total installed capacity, with China and South Korea representing 77.5% and 22.5% respectively [1]
中广核新能源：稳健增长，估值修复行情持续