Main points of investment
2023H1 made a profit of RMB 496 million, an increase of 12% over the same period last year:
In the first half of 2023, the company realized revenue of 1.49 billion yuan, up 11.3% from the same period last year; the profit attributable to shareholders was 496 million yuan, up 12.0% from the same period last year. The company's performance growth mainly benefited from the high growth of power generation, of which wind power and photovoltaic power generation increased by 26.5% and 14.6% respectively compared with the same period last year. During the period, the operation indicators of the company's power station performed well. The utilization hours of rights and interests wind power plants were 1353 hours, which was 116 hours higher than the national average of 1237 hours. The cost of comprehensive kilowatt-hour electricity in the first half of the year was 0.2149 yuan, down 7.77 percent from the same period last year.
The reserve of the project is abundant, and the target is to reach 10GW in the next 5 years.
The company actively obtains high-quality project resources, adding construction index 483.5MW and approved capacity 760MW in the first half of the year. At present, the company's landscape resources reserve a total of 19.26GW, including wind power about 12.53GW, photovoltaic about 6.73GW, under construction of 2194MW. By the end of June 2023, the company's equity installed capacity 3.64GW, the company plans to achieve 10GW in the next 5 years, based on the company's resource reserves and start-up projects, it is expected to add new installed 1GW every year to support the steady growth of the company's performance.
Sound operation, good cash flow, continuous decline in financial costs:
In recent years, the company through the sale of subsidized assets to recover funds, sound operation, good cash flow.
As of June 2023, the company has 3.43 billion yuan in cash on hand. In the first half of the year, the company repaid its US dollar debt ahead of schedule, and the weighted average cost was further reduced to 4.75% (2022H1ve5.38%). At present, the financing interest rate for newly signed projects has dropped to 3.8%, which is conducive to reducing subsequent financial costs. In the future, the company will be able to meet the new 1GW installation capital requirements every year through the operating cash flow of the existing power plant and the project bank loan. The company will also choose a timely opportunity to buy back the company's shares, based on the company's subsequent performance growth, sound financial performance and 30% stable dividend, the company's medium-and long-term investment appears.
Maintain the buy rating with a target price of HK $0.96:
We update the company's target price of HK $0.96, which is equivalent to 7 times and 5.7 times of 2023 and 2024 and PE. The target price has 52% room to rise from the current price, maintaining the buy rating.