Key points of investment

Profit for the first half of 2023 was 198 million US dollars, up 11.2% year over year:

In the first half of 2023, the company achieved revenue of US$1,244 million, up 7.9% year on year; realized net profit attributable to shareholders of US$198 million, up 11.2% year on year, and earnings of 4.61 cents per share. The increase in the company's performance mainly benefited from the performance contribution of new wind power projects and the increase in gross fuel profit from the Korean project. Looking at segment project revenue and operating profit, China's wind power and solar project revenue was 385 million US dollars, a sharp increase of 5.5% year on year, and realized operating profit of 237 million US dollars, an increase of 1% year on year; Korea's project revenue was 678 million US dollars, up 14.6% year on year, and achieved operating profit of 70 million US dollars, an increase of 37.1% year on year.

500-1000MW of scenery installed capacity will be added throughout 2023:

By the end of June 2023, the company's installed equity capacity reached 8,978.0 megawatts, an increase of 462.4 megawatts over the previous year, of which wind power and solar energy accounted for 62.3%. The installed capacity of wind power equity was 4,419.1 megawatts, an increase of 458.7 megawatts; the installed capacity of solar equity was 1,178.3 megawatts, an increase of 41.5 megawatts over the previous year. Currently, the company has 450 megawatts of projects under construction, with a equity capacity of 390 megawatts, including a 200 MW solar project in Jiangsu Province; a 100 MW solar project in Hainan Province; and a 150 MW (accounting for 60%) natural gas distribution project in Hubei Province. It is expected to add 500-1000 MW of installed wind capacity throughout 2023.

Wind power generation increased 38% year over year in July 2023, showing good performance:

The company generated 1,749.4 gigawatt-hours in July 2023, an increase of 6.5% over the previous year. Among them, wind power projects in China increased by 38%, and solar projects in China increased by 4.1%. From January to July 2023, the company completed a total of 11,890 gigawatt-hours of power generation, an increase of 6.5% over the previous year in 2022. Among them, wind power projects in China increased by 19.2%, and solar projects in China increased by 1.3%. As the company's popularity and new installations progress steadily, it will bring about a steady increase in power generation and performance.

Maintain the buy rating, target price of HK$2.68:

We updated the company's target price of HK$2.68, which is equivalent to 6 times and 5.3 times PE in 2023 and 2024. The target price has room to increase by 24% from the current price, maintaining the buying rating.