Jinwu Financial News | According to Haitong International Development Research, shareholders of Electric Energy Industry (00006) should account for profit of HK$6.03 billion in 2023, up 6% year on year. Among them, joint ventures contributed HK$3,582 billion in profit, up 19.64% year on year, and associated companies contributed HK$1,682 billion, down 5.72% year on year.
According to the bank, from a regional perspective, the UK sector contributed HK$2,808 million in profit, up 11.56% year on year, while the Australian sector contributed HK$1,225 million in profit, down 5.74% year on year. HK Electric and other business sectors including Canada and mainland China contributed HK$1.93 billion in profit, up 7.8% year on year. In 2023, the company's dividend was HK$2.82 per share, with a dividend ratio of 6.23%.
The bank expects the company's net profit for 2024-2026 to be HK$61.76/63.38/HK$6.51 billion (unchanged), respectively. Considering that the company currently uses joint venture dividends and interest as the main cash income, and the dividend payment rate is close to 100%, the bank uses a new cash flow discount valuation method to discount future cash flow from the joint venture company dividends and interest collected by the company based on the life of the asset. The target price was updated to HK$52.04, corresponding to 16 times PE in 2024 (the target price of the original DCF valuation method was HK$42.95, +21%) Maintain” “Better than the market” rating.