Incident: The company released its 2022 annual report. It achieved revenue of 18.561 billion yuan in 2022, an increase of 15.01% over the previous year; the net profit of the mother was 2,294 million yuan, a decrease of 0.04% over the previous year.

Wind power: High-quality assets support the level of power generation. Project development is expected to enter an acceleration period. By the end of 2022, the company's holding installed capacity was 5,819,900 kilowatts, an increase of 2.43% over the previous year. At the same time, its utilization hours remained high. The number of hours that can be used throughout the year reached 2,485 hours, which is 264 hours higher than the national average of usable hours. The average utilization rate of the unit reached 98.16%, an increase of 0.22pct over the previous year. Asset quality significantly supports power generation levels. In 2022, the company's controlled wind farm generated 14.031 billion kilowatt-hours of electricity, an increase of 4.17% over the previous year. Looking ahead, the company strives to reach 1,000 kilowatts of new energy installed capacity by the end of the 14th Five-Year Plan, and the average annual installed capacity growth in 23-25 is expected to reach about 1.36 million kilowatts. Compared with the considerable elasticity of the company's fleet stock growth, the company's project development is expected to enter a period of acceleration. Looking at reserve projects, by the end of 2022, the company's wind power capacity was 516,400 kilowatts, and the total approved capacity for 2022 was 771,500 kilowatts, an increase of 36.36% over the previous year. The total approved unstarted capacity reached 2,200,000 kilowatts; the capacity included in government development plans was 600,000 kilowatts, an increase of 150% over the previous year, and the total capacity included in local development and construction programs reached 8.1491 million kilowatts.

Natural gas: The share of gas retail sales continues to increase, the gross profit of gas sales continues to increase, and the construction of key projects of the company's gas pipeline network continues to advance, and natural gas end users are being vigorously developed. In 2022, the company added 7,8112 new users of various types downstream, and the cumulative number of users owned reached 55,9048. Relying on the advantages of pipeline network coverage, the company's share of retail gas volume continued to increase. In 2022, the company achieved gas sales volume of 3.885 billion cubic meters, an increase of 2.01% over the previous year, of which the retail gas volume reached 1,838 million cubic meters, an increase of 12.6% over the previous year, accounting for 47.31%, an increase of 4.45 pct over the previous year. The increase in the share of retail gas led to a rise in the gross profit level of the natural gas sector, and the profit level of the company's natural gas business continued to rise.

The construction of the Tangshan LNG project is progressing smoothly. The project is expected to be put into operation on schedule. The overall progress of the Tangshan LNG project is progressing smoothly. Among them, the first phase of the Tangshan LNG project supporting terminal project (#3 wharf) was completed, and the first phase of the receiving station project 3 #、4 #、7 #、8 #储罐已全部完成；二阶段 1 #、2 #、5 #、6 #储罐工程完成四个储罐气升顶，9 #、10 #、15 #、16 #储罐工程完成四个储罐承台施工；外输管线曹妃甸 -Baodi section, Baodi-Yongqing section engineering projects Basic construction. After the Tangshan LNG project is put into operation, the company's position as a major natural gas operator in the Beijing-Tianjin-Hebei region is expected to be further strengthened.

Profit forecast and valuation: Considering that the company's installed growth in '22 was slightly lower than expected, we lowered our profit forecast. It is estimated that the company's net profit to the mother in 2023-2025 was 2,623, 3,002, and 3.749 billion yuan (the original forecast was the net profit of the mother to the mother in 23-24 was 30.40 and 3.608 billion yuan), and the corresponding PE was 15.18, 12.06, 10.62 times, maintaining the “increase in holdings” rating.

Risk warning: Fluctuations in natural gas prices, construction or operation of the Tangshan LNG project falling short of expectations, changes in the new energy policy of the project site, the progress of the reserve project falling short of expectations, insufficient electricity consumption capacity at the project site, etc.