Group 1 - The construction of the Jinshan Thermal Power Plant's 2×1000 MW coal-fired expansion project is progressing rapidly, with over 3,000 workers striving to achieve high-quality dual commissioning by the end of the year [1][7] - The company emphasizes the importance of safety in development, implementing standardized safety management to ensure institutional safety, standardized facilities, modular construction, customized material placement, regulated personnel behavior, and normalized environmental protection [3][16] - The project has completed 23 milestone tasks to date, with significant progress in various critical operations, including the installation of the main turbine and boiler systems [7][13] Group 2 - The construction site of the Jun Da Thermal Power Plant's 2×1000 MW coal-fired integrated expansion project is also bustling, with over 2,000 workers and 120 large machines actively contributing to the accelerated construction [7][9] - The Jinshan Fourth Power Company has initiated the construction of a chimney, which consists of a 200-meter high reinforced concrete outer cylinder and a 210-meter high double steel inner cylinder, marking the start of this significant project [13][16] - The Baotou Xiguitu Thermal Power Project has achieved 100% completion of the foundation for the first boiler and is making steady progress on the second boiler and chimney foundations [16][18]

Core Viewpoint - The company, backed by China Resources Group, has strong thermal power assets and operational management capabilities, with significant growth in renewable energy capacity expected during the 14th Five-Year Plan period. The planned spin-off of China Resources New Energy for A-share listing is anticipated to alleviate capital expenditure pressure. The initial coverage gives a "Buy" investment rating [1]. Group 1: Company Overview - The company is the only power platform under China Resources Group, with rapid growth in renewable energy capacity in recent years. By the end of 2024, the total installed capacity will reach 72.43 GW, with thermal power, wind power, solar power, and hydropower accounting for 53%, 33%, 13%, and 1% respectively [1]. - The company's revenue for 2024 is projected to be HKD 105.284 billion, a year-on-year increase of 1.9%, with a net profit attributable to shareholders of HKD 14.388 billion, reflecting a year-on-year growth of 30.8% [1]. Group 2: Operational Efficiency - The company has a competitive edge in thermal power generation, with coal power utilization hours projected at 4,731, 4,688, and 4,625 hours for 2022-2024, respectively. The unit fuel costs are expected to decrease from 0.339 to 0.276 CNY/kWh over the same period, indicating superior operational management [2]. - Compared to other national thermal power companies, the company has lower unit fuel costs and higher thermal power profit margins, showcasing its operational excellence [2]. Group 3: Renewable Energy Strategy - The company has a differentiated competitive advantage in wind power projects, primarily located in Class IV resource areas, with less pressure on subsidy repayments compared to large base projects. The focus is on project profitability rather than scale, with wind and solar utilization hours exceeding industry averages [2]. - For 2025, the company plans to commission 10 GW of new renewable energy and 6.09 GW of coal power, aiming for renewable energy to account for 50% of its installed capacity, aligning with its 14th Five-Year Plan goals [2]. Group 4: Financial Outlook - The planned spin-off of China Resources New Energy is expected to raise HKD 24.5 billion for developing 7.175 million kW of renewable and energy storage projects, alleviating capital expenditure pressure [3]. - Revenue projections for 2025-2027 are HKD 105.744 billion, HKD 114.065 billion, and HKD 121.665 billion, with net profits of HKD 14.789 billion, HKD 15.484 billion, and HKD 16.082 billion, reflecting growth rates of 0.4%, 7.9%, and 6.7% respectively [3].