Shen Wan Hongyuan released a research report saying that maintaining the “buy” rating of Longyuan Electric Power (00916), combined with the rapid development of the company's new energy installations and the year-on-year decline in electricity prices, the net profit forecast for 2024 and 2025 was lowered to 76.35 billion yuan and 8.266 billion yuan, respectively, and the net profit forecast for 2026 was added to 9.338 billion yuan. The company's 2023 annual report was slightly lower than the bank's expectations, and it plans to pay an annual dividend of RMB 0.2225 per share.
According to the report, the company added 1,562,600 kilowatts of wind power to be controlled in 2023. At the same time, thanks to the improvement in unit operation and maintenance efficiency and the year-on-year increase in average wind speed, wind power utilization hours increased by 50 hours year-on-year, and the company achieved 61,353 billion kilowatt-hours of wind power generation, an increase of 5.22% over the previous year. Due to the increase in affordable projects and the expansion of the scale of wind power market transactions, the average feed-in price for wind power in 2023 was 0.457 yuan/kilowatt hour, down 0.025 yuan/degree from the previous year. At the same time, the company carried out “high pressure and low pressure” for fans, and fixed assets depreciated by 2,086 billion yuan for the units to be scrapped, causing short-term decline in performance, but it will benefit the company's continuous improvement in operation and maintenance efficiency in the long run.
In addition, in 2023, the operating profit of the company's wind power division was 11.011 billion yuan, a year-on-year decrease of 5.26%. All of the new PV projects put into operation are affordable projects. This also led to a year-on-year reduction in the average PV feed-in price of 0.095 yuan/degree to a flat 0.308 yuan/kilowatt hour. However, benefiting from a high increase in installed capacity, photovoltaics and other renewable energy sources generated 4.553 billion kilowatt-hours, an increase of 159.8% over the previous year. The PV division's performance reached 627 million yuan, an increase of 326% over the previous year.