Investment Rating - The report does not explicitly state an investment rating for 大唐新能源 (Datang New Energy) Core Viewpoints - Datang New Energy has missed opportunities in wind power installations due to its decision to deleverage while competitors were aggressively expanding their capacities [1][10] - The company has a significant reliance on the Sanbei region for wind resources, but has not effectively converted this advantage into superior profitability compared to peers [6][12] - The company's financial performance has been impacted by high wind abandonment rates in the Sanbei region, leading to lower revenue and profitability [7][10] Summary by Sections Company Overview - Datang New Energy, a subsidiary of Datang Group, primarily invests in, constructs, and operates wind power plants, with a total installed capacity of 15,419 MW as of the end of 2023 [1][2] - The company ranks seventh among Hong Kong and A-share listed new energy power companies, with wind power accounting for over 80% of its installed capacity [1] Financial Performance - In 2023, the company's revenue was 12.8 billion, a year-on-year increase of 2.4%, while net profit attributable to shareholders was 2.35 billion, a decrease of 17.5% [3][4] - The gross profit margin for 2023 was 49.6%, down from 53.3% in the previous year [3][4] - The company has faced challenges in generating free cash flow, with cumulative free cash flow reaching -16.33 billion since its listing [16][17] Operational Challenges - The company has been significantly affected by wind abandonment and curtailment issues in the Sanbei region, with abandonment rates historically higher than the industry average [7][10] - Despite early investments in wind resources, the company has not achieved substantial growth in installed capacity since 2013, with a growth rate of only 2% as of 2023 [4][12] Strategic Focus - Datang New Energy has shifted its focus towards deleveraging to improve net profit margins, having previously operated with a high debt ratio compared to peers [10][14] - The company has been criticized for its slow revenue growth and low profitability, which has led to a lower return on equity (ROE) compared to competitors [15][18] Shareholder Returns - The company's dividend yield was only 1.8% in 2023, the lowest among Hong Kong-listed new energy companies, with no stock buyback plans in place [17][18] - The price-to-book (PB) ratio is also low at approximately 0.7, reflecting the company's poor profitability and shareholder returns [18]
受困弃风限电，错失风电抢装：大唐新能源“起大早赶晚集”，一手好牌打稀烂！