LEP(SH:600644) Hua Xia Shi Bao·2025-05-23 01:23Core Viewpoint - Leshan Electric Power Co., Ltd. has experienced a significant stock price surge since April 2023, with a cumulative increase of 130.72% since April 1 and 150.33% year-to-date, attributed to seasonal demand and market sentiment [2][3][5]. Stock Performance - On May 21, 2023, Leshan Electric's stock price closed at 15.32 yuan per share, with a strong buy order of 22,000 lots [2]. - The stock's performance has been notably higher than the Shanghai Composite Index, which only increased by 4.61% during the same period [3]. Company Operations - The company has stated that its operations are normal, with no undisclosed information affecting its performance [4][5]. - Leshan Electric's market environment has not undergone significant changes, and production costs remain stable [4]. Market Trends - The electricity sector typically sees an upward trend in the second quarter, particularly due to high temperatures in Sichuan leading to increased electricity demand [5]. - The recent stock price increase is also linked to improved market sentiment regarding U.S.-China trade negotiations [5]. Financial Performance - In 2024, the company reported a revenue of 3.196 billion yuan, a 7.03% increase year-on-year, with electricity being the largest revenue source at 2.251 billion yuan [7]. - Despite revenue growth, the company's net profit has been declining, dropping from 70.58 million yuan in 2022 to 22.57 million yuan in 2024 [7][8]. Business Model Transition - The company has shifted its profit model from a purchase-sale difference model to a transmission and distribution pricing model since 2022, which has significantly reduced profitability [8]. - The traditional electricity business is facing challenges, prompting the company to explore new energy storage solutions and other innovative business models [8]. Regulatory Changes - A recent adjustment in the time-of-use electricity pricing mechanism is expected to impact the company's operating performance, potentially reducing electricity business revenue by approximately 8.5 million yuan in 2025 [6].