Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Views - The company has seen a continuous decline in financing costs and plans to issue REITs to further improve cash flow [2][4] - In the first half of the year, the company achieved a revenue of 1.21 billion RMB, a year-on-year increase of 7.7%, and a net profit of 450 million RMB, up 23.4% year-on-year [2] - The company’s electricity sales volume increased by 22.7% to 2482 GWh, primarily driven by contributions from acquisition projects [3] - The company holds a total solar power station capacity of 4.54 GW, with 61.8% of projects being grid-parity [3] - The company’s gross profit margin is 61.8%, a decrease of 2.4 percentage points due to a decline in settlement prices [3] Summary by Sections Company Overview - The company plans to issue solar power infrastructure REITs to enhance cash flow and risk management capabilities [4] - The company’s financing costs decreased by 19% year-on-year to 148 million RMB, attributed to lower actual interest rates and reduced interest-bearing borrowings [4] Financial Performance - The company adjusted its net profit forecasts for 2025-2027 to 917 million, 951 million, and 1.016 billion RMB respectively [5] - The expected dividend per share for 2025 is approximately 0.054 RMB, with current stock price corresponding to a PE ratio of 10.3 times [5] Market Position - The existing projects are expected to benefit from the "new and old separation" policy, which provides stable returns for existing power stations [4] - The company has approximately 1.2 GW of reserve projects available for acquisition, with 860 MW being grid-parity projects [3]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 1.30 per share, indicating a potential upside of 23% from the current price of HKD 1.06 [6][12]. Core Insights - The company plans to list a solar power plant REIT, which will activate existing assets and alleviate cash flow pressure due to delayed subsidies. This move is expected to lower financial leverage and financing costs through equity financing [3][9]. - Recent electricity pricing policies are anticipated to stabilize the revenue from existing projects, while green electricity direct connection initiatives will promote local consumption of renewable energy [4][10]. - The company's financing costs are on a downward trend, with a significant shift from HKD loans to lower-interest RMB loans, expected to further decrease to 3% by 2025. The company has sufficient power station reserves for acquisition [5][11]. Financial Summary - For FY2023, the company reported revenues of RMB 2,281 million, with a projected increase to RMB 2,500 million in FY2025, reflecting a growth rate of 2.4% [7][18]. - The net profit attributable to shareholders is expected to recover from RMB 791 million in FY2024 to RMB 940 million in FY2025, marking an 18.9% increase [7][18]. - The basic earnings per share are projected to be 11.23 cents in FY2025, with a corresponding PE ratio of 8.6 at the current price [7][18].