In today’s briefing:
- China Power International (2380 HK): A Major Move to Raise Clean Energy Exposure
China Power International (2380 HK): A Major Move to Raise Clean Energy Exposure
- The Rmb10.8bn acquisition of clean energy assets from parent by China Power International (2380 HK) is positive in raising its clean energy proportion to over 70% of total capacity.
- The drop in share price reflects concerns about elevation of gearing and the need for potential equity funding. However, even all equity financing scenario will only dilute EPS by 1%.
- We think its earnings quality will improve, balance sheet will be enhanced and profitability will be raised. Its 1H23 positive profit alert also showed a recovery in operational performance.
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