bingo party

Newsletter summary

On April 29, the company released its 2023 annual report, showing an increase of 7% in revenue.Tigeranddragoncrouchingtigerhiddendragon.60%, net profit increased by 45%Tigeranddragoncrouchingtigerhiddendragon.14%, it is proposed to distribute a cash dividend of 372 million yuan. The first quarterly report of 2024 showed that operating income fell by 2.00% and net profit fell by 28.79%. The company added 1.32 million kilowatts of installed capacity, with a total installed capacity of 5.6165 million kilowatts, and completed generating capacity of 9.066 billion kilowatt-hours, an increase of 11.0 percent over the same period last year. The scenery and resource conditions in the area where some of the 1Q24 projects are located have deteriorated, and power generation has decreased by 5.3% compared with the same period last year. The company is scheduled to raise about 1.8 billion yuan, but can pry investment 60-9 billion yuan. The investment proposal is to give the company a valuation of 20.0 times PE for 24 years, with a target price of 11.80 yuan per share, maintaining a "cautious recommendation" rating.

Text of news flash

[revenue and net profit increased significantly in 2023, with a cash dividend ratio of about 36.73%. In 2024, operating income and net profit fell both in the first quarter of 2024 compared with the same period last year.] in 2023, the company realized operating income of 3.691 billion yuan, an increase of 7.60% over the same period last year, and its net profit reached 920 million yuan, an increase of 45.14%. In addition, the company released its quarterly report for 2024, showing a decline in operating income and net profit during the reporting period, down 2.00% and 28.79% respectively from the same period last year.

[under the disturbance of resources, the gross profit margin is stable, electricity generation increases, but power generation costs rise slightly] in 2023, the company installed 1.32 million kilowatts of new capacity, with a cumulative installed capacity of 5.6165 million kilowatts, which was mainly concentrated in the fourth quarter. Last year, electricity generation totaled 9.066 billion kilowatt hours, an increase of 11.0 per cent over the same period last year, but some 1Q24 projects were affected by deteriorating resource conditions, resulting in a 5.3 per cent decline in electricity generation compared with the same period last year. In spite of this, the company's kilowatt-hour revenue is still higher than the same period last year, while the cost of kilowatt-hour is also slightly higher than the same period last year, and the comprehensive gross profit margin remains stable.

[increase in financial expenses, changes in investment income and tax preferential policies, drag on performance] in the first quarter of 2024, due to the increase in financing, the company's financial expenses increased compared with the same period last year, while the net income from investment decreased compared with the same period last year.TigeranddragoncrouchingtigerhiddendragonAsset and credit impairment. In addition, tax incentives for some projectsTigeranddragoncrouchingtigerhiddendragonThe maturity and the growth of minority shareholders' interests further affected the performance release.

By the end of 2023, the scale of the project under construction has reached 15.32 million kilowatts. The fixed increase will raise about 1.8 billion yuan, which can drive 60-9 billion yuan of investment and provide sufficient capital support for the company's projects under construction.

[investment advice: maintain a "cautious recommendation" rating considering resource disturbances and a large number of projects under construction] although resource disturbances led to a decline in electricity in the first quarter, the company is expected to have a lot of room for future growth in view of the large scale of projects under construction. It is estimated that the EPS from 2024 to 2026 will be 0.59,0.79 and 1.01 yuan respectively, giving the company a valuation of 20.0 times PE in 2024, with a target price of 11.80 yuan per share, maintaining a "cautious recommendation" rating.

[risk Tip] changes in natural conditions, lower-than-expected electricity consumption and extended subsidy account period may have an impact on the company's performance.