Zhitong Financial APP learned that Guoyuan International released a research report saying that it maintained the "buy" rating of Concord New Energy (00182), with the target price rising to HK $1.10, with 45 per cent room for increase from the current price. The first batch of green power subsidies will be issued soon, which is good for the improvement of cash flow and valuation of the green power industry; at present, the company has obvious valuation advantages.
The main points of the report are as follows:
In 2022, the annual power generation of rights and interests increased by 27.73% compared with the same period last year.
In December 2022, the company's equity electricity generation (723.17GWh) increased by 41.01% compared with the same period last year. Among them, wind power generation 668.58GWh, up 40.49 percent over the same period last year; solar power generation 54.59GWh, up 47.7 percent over the same period last year; and company equity generation 6673.01GWh, up 27.73 percent from January to December 2022. Among them, wind power generation 5893.71GWh, up 19.53 percent over the same period last year; solar power generation 779.3GWh, up 165.28 percent over the same period last year. Although the overall wind resources of the industry in the first half of the year are poor, the company's annual power generation growth is still good, highlighting the high quality of the company's power plant assets, and the company's power generation growth will bring stable growth.
The Energy Bureau announces that it will install new 160GW in 2023 to boost the prosperity of the industry.
At the National Energy work Conference in 2023, the National Energy Administration announced that the installed scale of wind power and solar power will reach about 430 million kilowatts and 490 million kilowatts in 2023. It is expected that the cumulative installed capacity of the national scenery in 2022 will reach more than 760 million kilowatts, a year-on-year growth rate of 18.75%. In 2023, the total installed capacity will reach 920 million kilowatts, of which the new installed capacity will reach 160 million kilowatts, an increase of more than 33% over the same period last year to enter the fast lane and boost the prosperity of the industry.
The price of photovoltaic industry chain continues to decline, which is good for operators to increase the rate of return of power stations.
2022Q4 silicon prices began to decline, superimposed the recent installation of the end, photovoltaic manufacturing end of the overall industrial chain price dropped rapidly. The price game of the industrial chain in 2023 will lead to the redistribution of upstream and downstream profits, and the decline in component prices will benefit the internal rate of return of photovoltaic projects back to a reasonable level, which will lead to the rapid release of installed demand for photovoltaic power stations. it is good for the performance growth and value revaluation of downstream operators.