HK Stock Market Move | CHINA RES POWER (00836) increases by more than 3%. The company's installation of renewable energy business accelerates, further enhancing the profitability of its thermal power business.

China Resources Power (00836) rose more than 3%. As of press time, it has risen by 3.44% to HK$19.86, with a turnover of HK$1.13 billion. Essence Securities International released a research report stating that China Resources Power's net profit for the first half of 2024 increased by 38.9% year-on-year to HK$9.36 billion. The company is expected to accelerate the installation of renewable energy in the second half of the year, aiming to achieve an annual increase of 10GW in installed capacity and striving to complete the goal of adding 40GW of renewable energy capacity during the "14th Five-Year Plan" period. The company's renewable energy business is expected to accelerate its installation in 2024, while the profitability of its thermal power business will further improve. The firm expects the company to maintain a dividend payout ratio of 40%. Haitong believes that the company has high-quality assets and its ROE level ranks at the forefront of power companies. With the downward trend of coal prices, the performance of its thermal power business is expected to continue to improve. The company is undervalued, with a current PE ratio of 6x. With recent frequent policies supporting green energy demand, it is expected to benefit first. Based on a dividend payout ratio of 40%, the current dividend yield is approximately 6.7%.