Jinwu Financial News | Haitong Securities said that China Electric Power (02380) is the new energy core platform under the China Power Investment Group. As of the end of 2023, the company's consolidated installed capacity was 45.2 million kilowatts, or YOY +42.5%. Among them, coal/gas/hydropower/wind power/photovoltaic/environmentally-friendly installations were 1108/50.5/595.1/1202/1515/317,000 kilowatts, YOY +0%/6.31%/+9.17%/+67.1%/+110.2%/+60.91%, respectively.
According to the bank, the company's thermal power turned a loss into a profit, hydropower was under pressure, and the profitability of wind power and photovoltaics continued to be unleashed. According to the company's new development strategy plan, the company proposed that in 2023 and 2025, clean energy accounts for more than 70% and 90% of installed capacity, clean energy revenue accounts for more than 50% and 70%, and clean energy accounts for more than 95% of installed capacity in 2030. Furthermore, the bank believes that the company's new energy+energy storage development model is expected to form a good synergy effect, improve energy efficiency, and promote clean energy transformation, and is expected to maintain relatively rapid growth in the future.
The bank expects the company to achieve net profit of 51.4/59.7/7.26 billion yuan in 2024-26, with earnings per share of 0.42/0.48/0.59 yuan. Referring to comparable company valuations, considering the company's thermal power profit recovery and the group's high-quality asset injection, the company can be given a certain valuation premium, 8-10 times PE over 24 years, converted at 1HKD = 0.92 CNY. The corresponding reasonable value range is HK$3.65-4.57. The initial coverage is superior to the market rating.