CHINA POWER(02380) 长江证券·2025-04-20 12:11Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The restructuring plan involves the transfer of controlling stakes in Wuling Power and Changzhou Hydropower to Yuanda Environmental Protection, with an assessed value of 18.609 billion, corresponding to an estimated valuation of approximately 1.87 times PB [2][6]. - After the completion of the transaction, the company will hold a 55.13% stake in Yuanda Environmental Protection, with a commitment from the controlling shareholder to facilitate the injection of additional hydropower assets into Yuanda within three years, establishing a core platform for hydropower [2][9]. - The transaction is expected to significantly enhance the valuation of the restructured assets, demonstrating strong support for minority shareholders [2][9]. Summary by Sections Event Description - The company signed agreements with Xiangtou International and Yuanda Environmental Protection to transfer 63% and 37% stakes in Wuling Power for a total consideration of 24.667 billion, and a 64.93% stake in Changzhou Hydropower for 3.068 billion [6]. - The payment will be made through shares and cash, with the share issuance price set at 6.55 per share [6]. Event Commentary - The restructuring plan highlights the company's commitment to minority shareholders and the significant appreciation in asset value, with Wuling Power's assessed value increasing by 73.21% and Changzhou Hydropower's by 221.76% compared to their book values [9]. - The company aims to solidify its position as a comprehensive clean energy flagship platform under the National Energy Investment Group, with plans to increase dividend payouts to at least 50% [9]. - Future earnings projections for 2025-2027 are estimated at 4.263 billion, 4.683 billion, and 5.239 billion, with corresponding EPS of 0.34, 0.38, and 0.42, indicating a favorable valuation [9].