NORINCO International(SZ:000065) GF SECURITIES·2024-05-28 08:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 14.32 CNY per share, while the current price is 11.77 CNY [6][5]. Core Views - The company is expected to benefit from strong global steel demand and robust coking coal prices, continuing to expand its power investment and operation business along the Belt and Road Initiative [5]. - The projected net profits for the company are estimated to be 1.15 billion CNY in 2024, 1.44 billion CNY in 2025, and 1.72 billion CNY in 2026, reflecting a growth trajectory [5]. Summary by Sections Investment Overview - The company plans to invest 13 million euros to acquire 80% of Aurora Solar d.o.o. and develop a 125MWp solar project in Bosnia, with a total investment of 110 million euros [2]. - The project is expected to have an internal rate of return of 9.68% and a payback period of approximately 8.85 years, with an average annual net cash flow of 123.4 million CNY during the first eight years of operation [2]. Financial Projections - Revenue is projected to grow from 13.43 billion CNY in 2022 to 37.33 billion CNY by 2026, with a compound annual growth rate of 16.3% [21]. - The company's net profit is expected to increase from 636 million CNY in 2022 to 1.72 billion CNY in 2026, indicating a strong growth rate of 19.1% [21]. Operational Strategy - The company aims to establish a foothold in the Central and Eastern European power market through its wholly-owned subsidiary in Hungary, leveraging its integrated investment and operation capabilities [20].