Group 1: Financial Performance - As of the end of August, the company received a total of 2.319 billion CNY in renewable energy subsidies, with 2.252 billion CNY coming from national subsidies, marking a year-on-year increase of 258.60% [2][3] - The subsidies received by the company accounted for 182.64% of the total national renewable energy subsidies received in 2024 [3] Group 2: Policy and Market Response - Multiple provinces have released formal plans or drafts in response to Document No. 136, establishing specific mechanisms for electricity pricing based on local renewable energy development [3][4] - The company plans to restructure its photovoltaic project calculation models in response to the implementation of Document No. 136, focusing on cost control and enhancing electricity trading capabilities [4] Group 3: Project Development and Investment - By the end of 2025, the company aims to have a total installed capacity of over 13.6 GW, including operational, under construction, and planned projects [5] - The company expects to add approximately 1.52 GW of new installed capacity in 2025 compared to 2024, with total investment in photovoltaic power stations estimated at around 6 billion CNY, assuming a cost of 4 CNY per watt [6]

机构：国元国际 研究员：杨义琼 近期，新能源发电及生物质发电企业陆续公告收到可再生能源补贴情况，大部分企业前8 月累计收到的 补贴金额均大幅超过2024 年全年补贴金额，特别是8月收到较大补贴金额，预计包括了纳入第一批补贴 合规目录清单的项目。国补发放金额超预期，释放出存量补贴回款提速的积极信号。 大唐新能源截至6 月底补贴欠款余额约235 亿元，上半年回收1.6 亿，同比持平；7 月回收8.42 亿元，同 比增加7 亿多。基于公司补贴欠款余额规模较大，且之前没有进入第一批合规目录清单的项目，现在也 可以去相关政府部门申诉，公司正积极与相关主管部门沟通，预计后续也有部分项目有望进入第二批补 贴目录。而且之前已经计提应收账款减值拨备的金额，有部分冲回的可能性。因此，补贴回款提速，一 方面直接改善资产负债表和现金流，同时因为拨备冲回也可能增加当期收益。 近期，新能源发电及生物质发电企业陆续公告收到可再生能源补贴情况，大部分企业前8 月累计收到的 补贴金额均大幅超过2024 年全年补贴金额，特别是8 月收到较大补贴金额，预计包括了纳入第一批补贴 合规目录清单的项目。国补发放金额超预期，释放出存量补贴回款提速的积极信 ...

Core Insights - Multiple A-share renewable energy companies have recently announced receiving substantial renewable energy subsidy funds, totaling over 6 billion yuan in August alone, with cumulative subsidies for the year reaching 1.5 to 3.5 times last year's total [1][2] Group 1: Subsidy Amounts and Growth - In August, Jilin Electric Power Co., Ltd. received 9.13 billion yuan in renewable energy subsidies, with a total of 12.71 billion yuan for the first eight months of the year, reflecting a year-on-year increase of 154.2% [1] - Jiangsu Linyang Energy Co., Ltd. reported receiving 2.03 billion yuan in August, with a total of 3.06 billion yuan for the first eight months, marking a year-on-year growth of 210.10% [1] - China Energy Conservation Solar Co., Ltd. received 16.92 billion yuan in August, with a total of 23.19 billion yuan for the first eight months, showing a year-on-year increase of 232.23% [2] - Jinkai New Energy Co., Ltd. received 9.39 billion yuan in August, with a total of 12.14 billion yuan for the first eight months, indicating a year-on-year growth of 341.67% [2] Group 2: Impact on Companies - The influx of subsidy funds is expected to improve cash flow for renewable energy projects, enhancing operational stability for companies [2][3] - Despite the significant subsidy amounts, the impact on current profits is limited as these subsidies are recognized as revenue upon electricity sales [2] - The renewable energy sector is characterized by high asset-liability ratios and ongoing investment in technology and equipment, making the timely receipt of subsidy funds crucial for alleviating financial pressure [3]

Investment Rating - The report assigns a "Buy" rating to the company, with a target price raised to HKD 3.20 per share, indicating a potential upside of 22% from the current price of HKD 2.62 [5][11]. Core Insights - The company achieved a revenue of RMB 6.845 billion in the first half of 2025, reflecting a year-on-year growth of 3.30%. However, the net profit attributable to shareholders decreased by 4.37% to RMB 1.688 billion [8][9]. - The company plans to increase its dividend payout ratio to approximately 33% during the 14th Five-Year Plan period, indicating a commitment to shareholder returns [8][9]. - The company aims to add 3 GW of new installed capacity in 2025, with a target of reaching a total installed capacity of 21 GW by the end of the 14th Five-Year Plan, with wind power accounting for over 80% of this capacity [3][9]. - The acceleration of subsidy payments is expected to improve cash flow, with the company recovering RMB 8.42 billion in subsidies in July 2025, significantly higher than the previous year [4][10]. Summary by Sections Financial Performance - In the first half of 2025, the company reported a pre-tax profit of RMB 2.358 billion, a 1.37% increase year-on-year, while the basic earnings per share were RMB 0.2046, with an interim dividend of RMB 0.03 per share [8][9]. - The company anticipates a stable increase in the dividend payout ratio, with a minimum of 30% of net profit being distributed as dividends from 2025 to 2027 [9]. Installed Capacity and Growth Targets - The company maintains its target of obtaining and commissioning 3 million kilowatts of new capacity in 2025, with a long-term goal of achieving 21 million kilowatts by the end of the 14th Five-Year Plan [3][9]. Cash Flow and Subsidy Recovery - The company has a substantial subsidy receivable balance of approximately RMB 23.5 billion as of June 2025, with expectations for accelerated recovery of these funds, which will enhance its cash flow and financial position [4][10]. Valuation and Market Position - The report highlights an expected improvement in industry cash flow due to faster subsidy disbursements, which is likely to enhance industry valuations. The target price corresponds to a price-to-earnings ratio of 10.4 times for 2025 and 9.4 times for 2026 [5][11].

Core Viewpoint - China Everbright Greentech (01257) saw a significant stock increase of over 10%, closing at HKD 1.07 with a trading volume of HKD 6.1633 million, following the announcement of receiving additional subsidy funds from the State Grid Corporation of China totaling approximately RMB 2.064 billion [1] Group 1 - The company announced that from July 1, 2025, to August 31, 2025, its 33 subsidiaries involved in biomass utilization, photovoltaic power generation, and wind power projects have received a notification regarding the settlement of additional subsidy funds [1] - The recovery of these additional subsidy funds is expected to improve the company's cash flow, reduce liabilities, and positively impact the operations of its biomass utilization, photovoltaic power generation, and wind power projects [1] - The additional subsidy funds have been recognized as revenue in the corresponding fiscal year upon electricity sales [1] Group 2 - CICC noted that the company has established cogeneration as its primary development direction after the expiration of subsidies [1] - As of the end of the first half of 2025, the company's heating supply capacity reached 2.18 million tons per year, with an expected increase to 2.5 million tons by the end of 2025 [1] - The company is actively expanding its virtual power plant and zero-carbon park initiatives, with 136 signed manufacturers for the virtual power plant [1] - Given the company's heating business has achieved scalable profit contributions, there is optimism regarding the recovery of profitability in biomass power generation for the year [1]

Core Viewpoint - China Everbright Greentech (01257) saw a stock price increase of over 10%, reaching HKD 1.07, with a trading volume of HKD 6.1633 million, following the announcement of receiving additional subsidy funds from the State Grid Corporation of China totaling approximately RMB 2.064 billion [1][1][1] Group 1 - The company announced that from July 1, 2025, to August 31, 2025, its 33 subsidiaries involved in biomass utilization, photovoltaic power generation, and wind power projects have received a total of approximately RMB 2.064 billion in additional subsidy funds [1][1][1] - The recovery of these additional subsidy funds is expected to improve the company's cash flow, reduce liabilities, and positively impact the operations of its biomass utilization, photovoltaic power generation, and wind power projects [1][1][1] - The additional subsidy funds have been recognized as revenue in the corresponding fiscal year upon electricity sales [1][1][1] Group 2 - The company has established cogeneration as its primary development direction after the expiration of subsidies, with a heating supply scale reaching 2.18 million tons per year as of the end of the first half of 2025, and is expected to reach 2.5 million tons by the end of 2025 [1][1][1] - The company is actively expanding into virtual power plants and zero-carbon parks, with 136 signed manufacturers for virtual power plants [1][1][1] - Given that the company's heating business has achieved scalable profit contributions, there is optimism regarding the recovery of profitability in biomass power generation for the year [1][1][1]

Group 1: Energy Storage Market - The domestic new energy storage project procurement scale reached 56.1GW/213.8GWh from January to July 2025, with actual storage system demand at 53.1GW/208.6GWh, a year-on-year increase of 181% [1][5] - The average prices of square lithium iron phosphate storage cells (100Ah, 280Ah, 314Ah) as of September 5, 2025, were 0.370, 0.298, and 0.298 yuan/Wh respectively, showing a slight increase [1][4] - The overseas storage orders signed by Chinese companies exceeded 160GWh from January to June 2025, representing a year-on-year growth of 220.28% [5] Group 2: Renewable Energy Subsidies - The renewable energy subsidies distributed from January to August 2025 significantly exceeded expectations, with the amount received in August alone accounting for approximately 70% of the total subsidies for the first eight months [2][3] - The subsidies cover both renewable energy generation and biomass power generation enterprises, aligning with the renewable energy fund's coverage [2] Group 3: Financial Improvement for Companies - The significant recovery of accounts receivable is expected to improve cash flow and restore company valuations, addressing previous market concerns regarding declining electricity prices and accounts receivable risks [3] - Companies such as Datang New Energy, China Power, and Longyuan Power are recommended based on the potential for improved cash flow from accounts receivable recovery [3] Group 4: Capacity Utilization and Market Outlook - Companies like CATL reported a battery system capacity utilization rate of 89.86% in the 2025 mid-year report, a notable increase from previous periods [5] - The capital market is expected to recover from previous pessimistic expectations regarding storage demand, leading to potential dual upgrades in performance expectations and valuation levels for storage-related stocks [6]

Group 1 - The company received a total of 9.13 billion yuan in national renewable energy subsidy funds in August 2025 [1] - From January 1 to August 31, 2025, the company received a total of 12.71 billion yuan in subsidies, representing a 154.2% increase compared to the same period last year [1] - The total subsidies received in 2025 accounted for 135.36% of the total subsidies received in 2024 [1] Group 2 - The recovery of the renewable energy subsidy funds will improve the company's cash flow and have a positive impact on future operations [1] - The subsidy funds have been recognized as revenue in the corresponding year's electricity sales, and this repayment will not have a significant impact on the company's profit and loss for 2025 [1]

Investment Rating - The investment rating for the industry is "Positive" (maintained) [4] Core Viewpoints - The acceleration of renewable energy subsidies is expected to significantly improve cash flow and valuation levels for companies in the renewable energy sector, particularly for new energy operators and biomass/waste incineration power generation companies [5][6][16] - The recent issuance of renewable energy subsidies has exceeded expectations, with the total amount received from January to August 2025 far surpassing the entire year of 2024, primarily due to a large subsidy disbursed in August [11][12] - The recovery of accounts receivable is anticipated to enhance cash flow and improve balance sheets, which will positively impact stock valuations in the Hong Kong market [6][16] Summary by Sections Renewable Energy Sector - The total subsidies received by renewable energy companies from January to August 2025 have already reached significant levels, with many companies receiving around 70% of their total subsidies in August alone [5][11] - Companies such as Datang New Energy, China Power, and Longyuan Power are recommended based on their potential for improved cash flow from receivables [6][16] Biomass and Waste Incineration Power Generation - The report highlights that biomass power generation companies are also expected to benefit from the subsidy disbursement, with companies like China Everbright Environment and Shaoneng Co. being recommended for their potential higher dividend capabilities post-receivable recovery [6][16] Energy Storage Sector - The average price of square lithium iron phosphate energy storage cells has seen a slight increase, with domestic demand remaining strong and production capacity utilization rates high [7][18] - The domestic new energy storage project bidding scale reached 56.1GW/213.8GWh from January to July 2025, indicating a year-on-year growth of 181% [19] - The report suggests that companies like CATL, Yiwei Lithium Energy, and Guoxuan High-Tech are worth watching due to their expected performance elasticity amid rising energy storage cell prices [18][19]

Group 1 - The company received a total of 913 million yuan in national renewable energy subsidy funds [1] - From January 1, 2025, to August 31, 2025, the company received 1.271 billion yuan in national renewable energy subsidy funds, representing a 154.2% increase compared to the same period last year, and accounting for 135.36% of the total subsidies received in 2024 [1] - The recovery of these subsidy funds will improve the company's cash flow and have a positive impact on future operations, although it will not significantly affect the company's profit and loss for the year 2025 [1]