Earnings of $268 million in 2023, dividend ratio increased to 25%:
In 2023, the company achieved operating income of US$2.93 billion, down 9.8% year on year; achieved net profit attributable to shareholders of US$268 million, up 37.2% year on year, and profit of 6.24 US cents per share. The company's profit growth was mainly due to reduced asset impairment losses and the conversion of joint revenue from loss to profit. Excluding one-time effects, the company's net profit to mother increased 10.6% year over year. The company values shareholder returns. The dividend was 1.56 cents per share in 2023, and the dividend ratio was raised to 25% (20% in 2022).
In 2023, the company's wind power prices fell slightly, and power generation increased 10.6% year on year:
China's wind power business achieved revenue of US$702 million in revenue in 2023, up 1.4% year on year; operating profit of US$373 million, down 5.57% year on year, mainly due to increased operating expenses and depreciation. In 2023, the company added 18.7 MW of installed wind power, and as of the end of 2023, the company's wind power equity installed capacity was 4,438 MW. The price of wind power (tax included) in 2023 was 0.56 yuan/kilowatt-hour (0.57 yuan/kilowatt-hour in 2022), and the number of hours used by wind power was 2,285 hours (2,284 hours in 2022); the company's wind power generation increased 10.6% year-on-year in 2023.
In 2024, the plan is to add 500-1000MW of installed wind power, and the performance is growing steadily:
In March 2024, the company generated 1,852.8 gigawatt-hours of electricity, an increase of 5.3% over the previous year. Among them, China's wind power projects increased by 7.9%, and China's solar projects increased by 24.1%. From January to January 2024, the company completed a cumulative total of 4,956.7 gigawatt-hours of power generation, an increase of 0.3% over the previous year. Among them, China's wind power projects increased by 4.4%, and China's solar projects increased by 18.1%. In 2024, the company plans to add 500-1000MW of installed wind power to be put into operation by the end of the year. It is expected that although the overall trend of electricity prices will be declining in the future, as the prices of fans and photovoltaic modules decline, the yield of the company's landscape projects will maintain a reasonable yield level, and the scenery performance is expected to continue to grow.
Maintaining a buy rating, target price of HK$2.80:
We updated the company's target price of HK$2.80, which is equivalent to 4.5 times and 4.0 times PE in 2024 and 2025. The target price has room to increase by 24% from the current price, maintaining the purchase rating.