Jinwu Financial News | According to Huayuan Securities Research Report, Longyuan Electric Power (00916) is China's first A+H listed new energy platform. In China's wind power development history, the company has largely played the role of a pathfinder. The company plans to add 30 million kilowatts of new energy installed during the “14th Five-Year Plan” period (not including the group's injection portion), and the group promised to inject surviving wind power assets into the company within three years. The bank analyzed accounts receivable as a core factor limiting the valuation expansion of Green Power Company (especially Hong Kong stocks), and expected improvements in repayment of stock subsidized projects.

The bank continued that the company's better subsidy recovery situation is related to the company's earlier projects, and the share of the fleet in 2018-2020 was very limited. Judging from the new installed capacity of wind power over the years, the vast majority of the company's installed capacity was put into operation in 2017 and before, while the gap in China's renewable energy subsidy fund was small before 2017. In addition, the rush to install at the time was not obvious, the project was relatively standardized, and the “confirmation” ratio of the company's projects was high. However, in 2018-2020, when the rush to install was most obvious, the company was affected by issues such as the Group's strategy, and the scale of new installations was small; the new projects added after 2021 were all affordable projects. It can be inferred from this that the proportion of “problem projects” in the company's existing projects is very limited, and the availability of a new round of subsidy funds is expected to be a catalyst for the launch of the company's stock price. In addition to accounts receivable, another important factor limiting Green Power's stock price in the bank's analysis is market concerns about the yield of new projects. What is behind this is that the disadvantages of unstable new energy sources were revealed too early, and the pressure on power system consumption exceeded expectations. Overall, however, the bank is analyzing the current point of analysis. There is a real downturn in the green electricity sector, but the response has been quite adequate. The benefits are gradually accumulating, and the logic of the industry's long slope and heavy snow has not changed.

Based on the company's installation plan, the bank predicts that net profit (after deducting interest on perpetual bonds) attributable to ordinary shareholders of the parent company in 2024-2026 will be 67.30, 74.39, and 8.089 billion yuan, respectively. The current stock price corresponds to 8, 7, and 6 times PE. Compared with companies such as Three Gorges Energy, Jiazawa New Energy, Datang New Energy, and CGN New Energy, the company is a benchmark company in the green power sector. The stock price trend is closely related to the development of the entire industry. It was covered for the first time, giving it an “gain” rating.