08 Mar 2024

CNE’s FY23 revenue was up by 7.8% YoY to Rmb2,589m (excluding the O&M revenue, which was disposed in November 2023). The top-line growth was mainly attributed to a 6.9% YoY increase in power sales, which accounted for 87.3% of total revenue (FY22: 88.1%). Revenue from wind power rose by 7.0% YoY to Rmb1,893m, mainly driven by the increase in capacity (+11% YoY to 3,467MW), while partly offset by 8.3% YoY decline in tariff to Rmb0.40/kWh on increasing proportion of parity projects. Revenue from solar was up by 6.3% YoY to Rmb366m with capacity rose by 29.3% YoY to 583MW during FY23. Avg solar utilization hrs was down by 5.9% YoY to 1,455 hrs and curtailment rose by 2.1ppt YoY to 5.9%. Avg solar tariff was Rmb0.5196/kWh, down from Rmb0.5252/kWh last year. Wind/solar accounted for 84%/16% of FY23 power sales. EPC was up by 15% YoY to Rmb329m in FY23, accounted for 13% of the total revenue (FY22: 12%). FY23 GPM was down by 5.2ppt YoY to 54.3% amid further decline in electricity price. Admin cost ratio recorded a 0.3ppt YoY decline to 15.6% in FY23 (FY22: 15.9%). Income tax reduced by 33% YoY to Rmb154m. As a result, NP was up by 10.5% YoY to Rmb963m.

CROSBY Research – Concord (182 HK/BUY): Solid FY23 results