CHINA POWER(02380) 智通财经网·2025-04-16 15:13Core Viewpoint - China Power International Development Co., Ltd. announced a significant asset restructuring plan, detailing the transactions involving the sale of stakes in Wuling Power and Changzhou Hydropower to Yuanda Environmental Protection [1] Group 1: Transaction Details - China Power and Xiangtou International will sell 63% and 37% stakes in Wuling Power to Yuanda Environmental Protection for a total consideration of 24.667 billion yuan, paid in shares and cash [1] - Guangxi Company, a wholly-owned subsidiary of China Power, will sell a 64.93% stake in Changzhou Hydropower to Yuanda Environmental Protection for 3.068 billion yuan, also paid in shares and cash [1] - After the transactions, China Power will become the controlling shareholder of Yuanda Environmental Protection, holding 55.13% of its shares [1] Group 2: Capital Structure and Market Dynamics - Post-restructuring, China Power will leverage the flexibility of the Hong Kong stock market and the high valuation and liquidity of the A-share market to enhance capital market functions [2] - The restructuring is expected to stimulate capital market dynamics effectively [2] Group 3: Fairness of Transaction and Shareholder Benefits - The share price for Yuanda Environmental Protection's issuance to China Power is set at 6.55 yuan, representing a significant discount compared to recent market prices [3] - The transaction's price-to-book (PB) ratio is 1.87 times, with an estimated price-to-earnings (PE) ratio of approximately 20 times for 2024, indicating substantial capital appreciation for China Power's shareholders [3] Group 4: Future Operations and Growth Potential - National Energy Investment Group plans to integrate and list additional hydropower assets within three years while maintaining China Power's controlling position [4] - The current hydropower operations represent only about 20% of the total installed capacity of over 25.5 million kilowatts, suggesting significant future operational potential [4] Group 5: Dividend Policy and Synergy - China Power intends to increase Yuanda Environmental Protection's dividend payout ratio to at least 50%, enhancing cash returns for shareholders [5] - The management of over 20 million kilowatts of coal power assets by China Power is expected to create synergies with Yuanda Environmental Protection's existing operations, further benefiting both companies [5]