Huayuan Securities: GD Power Development's performance meets expectations, maintaining a 'Shareholding' rating.

Huayuan Securities Research Reports indicate that GD Power Development (600795.SH) reported a net income of 9.831 billion yuan for 2024, a year-on-year increase of 75.29%; Q4 net income was 0.64 billion yuan, compared to a loss of 0.016 billion yuan in the same period of 2023, with performance meeting expectations. The significant increase in performance in 2024 is due to asset disposals, while the decline in non-recurring performance is attributed to impairments. The profit growth from thermal power is mainly benefited from the drop in coal prices, with the company's benchmark coal price for 2024 being 922.17 yuan/ton, down 12.79 yuan/ton year-on-year. It is estimated that the net profit per kWh for thermal power in 2024 will be 2.9 cents/kWh, an increase of 0.47 cents/kWh from 2023. The company plans capital expenditures of 74.1 billion for 2025, which is roughly equivalent to 2024, but the planned capital expenditures for new energy in 2025 are approximately 28 billion, a decrease of 3.7 billion yuan from 2024. The company plans to start 5.2GW of new energy projects in 2025, which is a reduction of 3.4GW compared to 2024. With the new energy market about to open fully, the company’s cautious approach toward new energy may reflect its emphasis on project ROI and shareholder interests. Additionally, the company’s Board of Directors approved the 'Proposal for Formulation' on April 14. Maintaining the 'Shareholding' rating.