Jinwu Financial News | Guojin Securities Research Report said that on February 28, Xinyi Energy (03868) released its 2023 annual report, achieving revenue of HK$2,517 billion, up 8.7% year on year. Net profit attributable to shareholders of listed companies was HK$993 million, up 2.2% year on year. A final dividend of HK$0.026 was paid per share, and annual dividends accounted for 46% of distributable revenue. The company's annual power generation increased 19.6% year on year, and gross margin decreased slightly by 2.7 pct; the parent company had sufficient reserve projects, and the share of affordable projects further increased.
Furthermore, in 2023, the company's financial expenses ratio was 14.1%, an increase of 2.5 pct over the previous year, and the increase in overseas interest rates led to a year-on-year increase in the company's financing costs. The company's net debt ratio of 42.3% is still significantly better than the industry average. As of the end of 2023, the company's bank loans denominated in RMB accounted for about 13.3%. Considering the current high interest rates on offshore loans, the company plans to increase the loan ratio to banks in mainland China in 2024, which is expected to reduce financing costs.
According to the bank, according to the company's latest power plant acquisition plan, the company's 2024-2025 net profit forecast is HK$12.35 (-30%) /14.24 (-32%) billion, respectively. The estimated net profit for 2026 is HK$1,538 billion. The dividend per share for 24 years is estimated to be approximately HK$0.065 per share based on the dividend ratio for 23 years. The current stock price corresponds to 7.35 times /0.62 times/6% of 2024 PE/PB/dividend ratio, respectively. Maintain a “buy” rating.