Bocom int'l released a research report stating that it has lowered the target price of Datang Renew (01798) to HK$2.02 and maintained a 'neutral' investment rating. The bank predicts that the company's profits in the first half of this year will decrease by 7.9% year-on-year, as the decrease in wind power generation offset the increase in photovoltaic power generation, and the group's power generation in the first half of the year was flat compared to the same period last year.
In the scenario where there is still pressure for a decline in utilization rate in the second half of the year, the bank lowered the 2024 and 2025 power generation forecasts of Datang Renew by 1.7% and 1.9%, respectively. The group's 2024 forecast net debt/total share capital ratio is lower than the industry average covered by the bank. Bocom Intl believes that Datang Renew still has room to accelerate installation and increase dividends. The bank lowered the forecasted earnings per share of Datang Renew for 2024 and 2025 by 6.6% and 7.2%, respectively.