Investment Rating - The report maintains a "Buy" rating for China Power (2380) [2][8] Core Views - The company achieved a net profit attributable to equity holders of 3.4 billion RMB in 2025, a year-over-year decrease of 11.9%. The total dividend for 2025 is projected at 0.17 RMB per share, with a dividend payout ratio of 70% [3][8] - The restructuring of the red-chip controlled A-share structure is expected to provide strong support for the company's valuation, with a target price of 4.39 HKD based on a 0.8x PB for 2026 [8] Financial Summary - **Revenue Forecast (Million RMB)**: - 2024: 54.213 billion - 2025: 49.029 billion (down 9.6% YoY) - 2026E: 46.648 billion (down 4.9% YoY) - 2027E: 48.244 billion (up 3.4% YoY) - 2028E: 50.409 billion (up 4.5% YoY) [5] - **Net Profit Forecast (Million RMB)**: - 2024: 3.364 billion - 2025: 2.910 billion (down 13.5% YoY) - 2026E: 2.195 billion (down 24.6% YoY) - 2027E: 2.591 billion (up 18.1% YoY) - 2028E: 3.077 billion (up 18.8% YoY) [5] - **Key Financial Ratios**: - PE for 2025: 10.7, 2026E: 12.3, 2027E: 16.4, 2028E: 13.9 - PB for 2025: 0.65, 2026E: 0.61, 2027E: 0.60, 2028E: 0.59 [5] Performance by Segment - **Thermal Power**: - Net profit of 2.27 billion RMB in 2025, up from 1.56 billion RMB in 2024. The profit per kWh is 0.045 RMB, an increase of 0.019 RMB YoY [8] - **Hydropower**: - Net profit of 0.3 billion RMB in 2025, down from 0.51 billion RMB in 2024, affected by reduced rainfall [8] - **Renewable Energy**: - Wind power profit of 2.94 billion RMB in 2025, down from 3.18 billion RMB in 2024. Solar power profit of 0.98 billion RMB, down from 1.72 billion RMB in 2024 [8] Valuation Comparison - The report compares China Power's valuation with peers, noting a PE of 12.3 for 2025 and a PB of 0.61, while the average PE for comparable companies is 7.9 for 2025 [10]