CHINA RES POWER(00836) 搜狐财经·2025-03-27 12:42Core Viewpoint - Despite the declining electricity prices in the renewable energy sector, China Resources Power (华润电力) has achieved remarkable profitability, surpassing major state-owned power companies in the industry [1][2]. Financial Performance - In 2024, China Resources Power reported a net profit of 14.39 billion HKD (approximately 13.4 billion RMB), a year-on-year increase of 30.8% [1][3]. - The renewable energy segment, primarily wind and solar, contributed 9.23 billion HKD (approximately 8.6 billion RMB), accounting for 64% of total profits [1][3]. - The thermal power segment contributed 4.64 billion HKD (approximately 4.3 billion RMB), making up 32% of total profits [1]. Installed Capacity and Structure - As of the end of 2024, China Resources Power's total installed capacity was 72.4 million kW, with thermal power accounting for 52.8% and renewable energy (wind, solar, and hydro) accounting for 47.2%, an increase of 6.5 percentage points year-on-year [4]. - The installed capacity for wind and solar power was 24.31 million kW and 9.43 million kW, respectively [5]. Comparative Analysis - In the first half of 2024, China Resources Power achieved a net profit of 8.55 billion RMB, significantly outperforming its peers, including Datang Power, Huadian International, and Huaneng International, despite having the lowest installed capacity among them [6][7]. - For instance, Huaneng International, with an installed capacity of 139 million kW, generated a net profit of 7.45 billion RMB, while China Resources Power, with only 70 million kW, achieved a higher profit [6]. Reasons for Success - The success of China Resources Power can be attributed to its strategic focus on wind power, which has better consumption and pricing dynamics compared to solar power [8]. - The company's assets are primarily located in the eastern and central regions of China, where wind power resources are more favorable, leading to lower costs and higher competitiveness [8]. - The utilization hours for wind and solar power were significantly higher than the industry average, with wind power achieving 1,731 hours and solar power 1,121 hours in the first three quarters of 2024 [9]. Future Plans - China Resources Power plans to spin off its renewable energy segment for independent listing, aiming to raise 24.5 billion RMB for further project development [10][11]. - The company intends to add 10 million kW of new installed capacity by 2025, with a target of having renewable energy account for 50% of its total capacity by the end of the 14th Five-Year Plan [11]. Industry Insights - The case of China Resources Power highlights the importance of quality over quantity in renewable energy development, emphasizing careful project selection and site evaluation [12].