Zhitong Financial APP learned that Changjiang Securities released a research report that maintained China Electric Power's (02380) "buy" rating and expected results for 2023-2025 to be 4.422 billion yuan, 5.644 billion yuan and 6.655 billion yuan, respectively, corresponding to EPS of 0.36 yuan, 46 yuan and 54 yuan, respectively. The company issued a voluntary announcement: from the date of the announcement to June 3, 2024, the controlling shareholder of the company, State Power Investment, will continue to increase its shareholding in the open market, with a total amount of no more than HK $2 billion, demonstrating its confidence in development.

The main points of Cheung Kong Securities are as follows:

Shareholders once again increase their holdings, demonstrating confidence in development.

In fact, from November 1, 2022 to the date of announcement, the company's controlling shareholder, State Power Investment, through concerted actors (a subsidiary of State Power Investment), has purchased a total of more than 346395000 shares of the company in the open market, accounting for 2.8% of the total share capital of the company. up to now, the controlling shareholder holds 62.82% of the company.

Driven by the fact that a number of businesses have entered the repair period, the company realized 1.85 billion yuan in profit attributable to equity holders in the first half of the year, an increase of 117.64% over the same period last year. In the context of the continued repair of the company's fundamentals, the controlling shareholders continue to increase their shareholdings in the company on a large scale, expressing their full support for the company's strategic development and its transformation from a traditional power generation enterprise to a leading green low-carbon energy supplier, and more importantly, strengthening the company's intention to position as its flagship listed subsidiary of clean energy, demonstrating the long-term commitment made by the controlling shareholder to the company and its firm confidence in the company's future.

With the grand plan of the 14th five-year Plan, the company has entered a period of rapid growth.

The company has previously put forward a strategic goal of more than 8 million kilowatts of coal power by the end of 2025. Assuming that the company will retain only 8 million kilowatts of coal power by the end of 2025, the company will still need to install about 51.48 million kilowatts of clean energy from 2023 to 2025. In the first half of the year, the company acquired 9.2683 million kilowatts of new energy assets of the group, which once again demonstrated the company's main position as the group's new energy platform. As the largest clean energy power generation group in the world, under the background of SASAC encouraging mergers and acquisitions of central enterprises, the subsequent securitization of group assets is expected to accelerate. We continue to be optimistic about the value enhancement and investment opportunities brought about by the rapid growth of the company's new energy business during the 14th five-year Plan period.

Risk Tips:1, the production progress and benefit of the new project is lower than the expected risk; 2, the wind condition and light resources are not as good as the expected risk.