CYPC(SH:600900) Mei Ri Jing Ji Xin Wen·2025-08-03 08:05Core Viewpoint - Changjiang Electric Power is facing skepticism from small and medium investors regarding its recent decision to invest approximately 26.6 billion yuan in the Gezhouba shipping capacity expansion project, raising concerns about the economic viability and potential impact on future performance and dividends [1][7]. Investment Decision - The company announced a board resolution to invest about 26.6 billion yuan in the Gezhouba shipping capacity expansion project, which is aimed at enhancing the shipping function of the Gezhouba dam, a major hydropower project on the Yangtze River [1][4]. - The project is expected to address the current overcapacity of the existing shipping facilities, which have been operating beyond their designed capacity of 50 million tons per year [4]. Financial Impact - The total construction period for the project is estimated to be 91 months, including a 12-month preparatory phase, with funding sourced from the company's own funds [4]. - In 2024, the expected cargo throughput through the Gezhouba lock is projected to reach 156 million tons, indicating a growing demand for shipping capacity [4]. Social and Environmental Benefits - The project is anticipated to reduce waiting times for vessels, leading to significant shipping efficiency gains and contributing to a greener transportation system [5]. - It is also expected to enhance the company's ESG (Environmental, Social, and Governance) ratings, particularly in water resource management [5]. Investor Concerns - Investors are worried about whether the large investment will affect the company's future performance stability, dividend distribution, and overall valuation [7]. - The company has not yet clarified whether the expansion will lead to increased electricity prices for the Gezhouba power station, as the current shipping through the lock is free [8]. Performance Metrics - For the year 2024, the company is projected to achieve a net profit attributable to shareholders of 32.496 billion yuan, representing a year-on-year growth of 19.28%, with a proposed cash dividend distribution of 23.074 billion yuan, which constitutes 71% of the net profit [9].