Core Viewpoint - China Electric Power Construction (China Electric Power) announced that its subsidiary, China Electric Power Construction Group Central South Survey and Design Institute Co., Ltd. (Central South Institute), won a bid for an offshore wind power project with a contract value of approximately 10.77 billion RMB [1][2]. Project Details - The project is the first phase of a 1 million kW offshore wind power EPC general contracting project in Donggang, Liaoning Province [2]. - The contract amount for this project is approximately 10.77 billion RMB [1][2]. Company Background - Central South Institute was established in 1949 and is headquartered in Changsha, Hunan Province. It is a wholly-owned subsidiary of China Electric Power, with business areas including energy power, water resources and environment, urban and rural construction, and international business [4]. Recent Achievements - China Electric Power has secured several large contracts this year, including: - A joint bid for a 1 million kW/6 million kWh energy storage project in Inner Mongolia, with a total contract amount of approximately 6.282 billion RMB [5]. - A contract for the second phase of the national reserve forest construction project in Fujian Province, valued at approximately 4.4 billion RMB [5]. - A contract for the design and construction of the Yalong River Mengdigou Hydropower Station dam project, amounting to approximately 5.771 billion RMB [5]. - An EPC contract for a 1.1 GW wind power project in Suez, Egypt, valued at approximately 5.97 billion RMB [6]. Financial Performance - As of June 12, the stock price of China Electric Power was reported at 4.86 RMB per share, with a total market capitalization of 83.7 billion RMB [7]. - In the first quarter of this year, the company reported total revenue of 14.27 billion RMB, a year-on-year increase of 1.61%, while total costs were 13.80 billion RMB [7].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 633.68 billion yuan in 2024, reflecting a year-on-year growth of 4.1%, while the net profit attributable to shareholders decreased by 7.2% to 12.02 billion yuan [5][10] - The company continues to see stable growth in its core business, particularly in water conservancy, hydropower, and renewable energy sectors, with significant increases in solar project capacity [6][8] - New contract signings increased by 11.2% to 1,270.69 billion yuan in 2024, with notable growth in energy and infrastructure contracts [7] Summary by Sections Revenue and Profitability - In 2024, the company reported operating revenue of 633.68 billion yuan, with a net profit of 12.02 billion yuan, and a decrease in net profit margin to 2.5% [5][6] - The gross margin for 2024 was 13.2%, slightly down from the previous year, while the gross margin for the first quarter of 2025 was 10.8% [6][10] Contract and Project Growth - The company secured new contracts worth 1,270.69 billion yuan in 2024, with energy and infrastructure contracts showing strong growth [7] - The company emphasized the quality of contracts, with high-quality orders accounting for 44.2% of new contracts [7] Capacity Expansion - The company added 204.2 MW of wind power, 404.37 MW of solar power, and 0.18 MW of hydropower capacity in 2024, leading to a total installed capacity of 33,128 MW, a 22% increase year-on-year [8] - The company is actively developing new energy projects, with significant contributions to revenue and investment from these sectors [8] Cash Flow and Dividends - The company reported a net operating cash inflow of 24.55 billion yuan in 2024, an increase of 22.8 billion yuan from the previous year [9] - The proposed dividend for 2024 is 1.2695 yuan per share, maintaining a payout ratio of 18.2% [10] Financial Forecasts - The company has adjusted its net profit forecasts for 2025 and 2026 to 12.70 billion yuan and 13.40 billion yuan, respectively, reflecting a downward revision of 13% and 18% [10]