CTGR Group:Green power giant forges ahead
China Three Gorges Renewables (CTGR) is one of the pioneers among newenergy power operators. The Company is a subsidiary of CTG, whose activelydevelops wind and solar power. CTGR plans to achieve a newly installed capacityof 5,000 MW in solar and wind power in 2023, with installation progress expectedto accelerate in 2H23. We anticipate that lower upstream costs may improveCTGR’s IRR of the new energy projects. CTGR is also exploring the integration ofmultiple new energy to develop innovative projects and looking for further growthspace. Currently, CTGR is trading at 17x FY23E PE. We assign CTGR withFY23E target PE of 20x and arrive at the target price of RMB 6.79/ share.Initiate with BUY.