Core Viewpoint - Longyuan Power's Q1 2025 net profit decreased by 21.9% year-on-year, primarily due to the profit gap from the divestment of thermal power assets and uncontrolled operating costs [1][2] Group 1: Financial Performance - Longyuan Power's Q1 net profit decline was approximately 100 million yuan due to the divestment of thermal power business, which aligns with the company's strategy to focus on clean energy [2] - Operating expenses grew at a rate significantly higher than revenue, contributing to the profit decline [2] - The company added 34.7 MW of wind power and 1.5 MW of solar power in Q1, totaling 36.25 MW, but this increase did not effectively offset the cost pressures [2] Group 2: Market Outlook and Strategy - Jiao Yin International predicts that Longyuan Power will accelerate its installation pace before the June 1 policy deadline, aiming to add 5 GW of clean energy projects in 2025, primarily in wind power [3] - The rapid deployment of new energy projects may lead to increased equipment procurement costs and potential issues with grid absorption capacity, raising concerns about the company's ability to balance expansion with profitability [3] - The low proportion of solar installations (less than 5%) highlights the company's reliance on a single business structure, which may limit its long-term risk resilience [3] Group 3: Valuation and Market Sentiment - Jiao Yin International has lowered Longyuan Power's 2025-2026 profit forecasts by 2.4% and adjusted the target price to 7.81 HKD while maintaining a "buy" rating, reflecting a balance between short-term volatility and long-term value [4] - The current stock price corresponds to a price-to-earnings ratio of 3.17, indicating it is at a historical low, leading some investors to believe that negative factors are over-reflected [4] - Concerns remain regarding the company's profit structure post-thermal power divestment, particularly as the wind power sector faces challenges from market price reforms [4]

Group 1 - The company achieved a total operating revenue of 23.517 billion yuan in 2024, representing a year-on-year increase of 20.09% [1] - The net profit attributable to shareholders reached 531 million yuan, up 181.59% year-on-year, while the non-recurring net profit surged by 5401.22% to 399 million yuan [1] - The significant performance improvement was primarily driven by the decline in coal prices, expansion of installed capacity, and advancement of renewable energy projects [1][4] Group 2 - The average procurement price of thermal coal was 822.02 yuan per ton, a decrease of 10.07% year-on-year, which contributed to the increase in gross profit margin [4] - The company completed a total electricity generation of 50.366 billion kilowatt-hours, marking a 27.79% increase year-on-year, largely due to the acquisition of additional power generation assets [4] - Despite the positive impact of lower coal prices, the average on-grid electricity price fell by 2.82% to 437.37 yuan per megawatt-hour, indicating potential pressure on profitability from market reforms [4][6] Group 3 - The company has made progress in its renewable energy transition, with 457,100 kilowatts of renewable capacity installed and 600,000 kilowatts under construction [5] - The proportion of renewable energy capacity to total installed capacity remains low at 3.74%, indicating a continued reliance on traditional thermal power [5] - The company is actively developing energy storage projects, including pilot projects and distributed energy storage initiatives [5] Group 4 - The net cash flow from operating activities was 3.771 billion yuan, reflecting a year-on-year increase of 75.25%, indicating strong cash flow health [6] - The company faces challenges from electricity price fluctuations due to ongoing market reforms, which may impact future performance [6] - The need to balance traditional thermal power advantages while accelerating the renewable energy transition is crucial for long-term competitiveness [6]