CHINA LONGYUAN(00916) 华源证券·2024-05-18 09:02Investment Rating - The report assigns an "Accumulate" rating for Longyuan Power (0916.HK) as a first coverage, indicating a positive outlook for the company's stock performance in the renewable energy sector [3][6]. Core Insights - Longyuan Power is recognized as a pioneer in China's renewable energy development, being the first A+H dual-listed renewable energy platform in the country. The company has a total installed capacity of 35.59 million kilowatts as of December 2023, with wind power accounting for 27.75 million kilowatts, solar power for 5.96 million kilowatts, and thermal power for 1.875 million kilowatts [3][12]. - The company plans to add 30 million kilowatts of new renewable energy capacity during the 14th Five-Year Plan period, with a commitment from the State Energy Group to inject additional wind power assets totaling 21.41 million kilowatts into Longyuan Power [3][14]. - The report highlights that accounts receivable are a key constraint on the valuation expansion of green power companies, particularly in the Hong Kong market, with Longyuan Power's accounts receivable reaching 35.7 billion yuan by the end of 2023 [3][16]. Summary by Sections 1. Pioneer in Renewable Energy Development - Longyuan Power has played a significant role in the history of wind power development in China, having entered the wind power operation industry in 1999 and listing on the Hong Kong Stock Exchange in 2009. The company achieved A+H dual listing by merging with ST Ping Energy in 2022 [3][12]. 2. Long-term Growth Potential - The company aims to increase its renewable energy capacity by 30 million kilowatts during the 14th Five-Year Plan, with the State Energy Group's commitment to inject additional assets confirming Longyuan's strategic importance in the group's renewable energy strategy [3][14]. 3. Financial Forecast and Valuation - The report forecasts that Longyuan Power's net profit attributable to ordinary shareholders will be 6.73 billion, 7.44 billion, and 8.09 billion yuan for 2024, 2025, and 2026, respectively. The current stock price corresponds to a price-to-earnings (PE) ratio of 8, 7, and 6 for the respective years [3][24].