CYPC(SH:600900) Zheng Quan Shi Bao·2025-08-23 01:22Core Viewpoint - China Three Gorges Corporation plans to increase its stake in China Yangtze Power Co., Ltd. by up to 8 billion yuan between August 23, 2025, and August 21, 2026, reflecting confidence in the company's future development [1][2]. Group 1: Company Actions - China Yangtze Power announced a significant share buyback plan, with the controlling shareholder intending to purchase between 4 billion and 8 billion yuan worth of shares within the next 12 months [2][3]. - The company is set to release its mid-year report on August 30, with the first quarter showing a net profit growth exceeding 30% [3]. - A new shareholder return plan for 2026-2030 was announced, committing to cash dividends of no less than 70% of the annual net profit attributable to shareholders [3]. Group 2: Market Context - The electronic sector has surpassed the banking sector in A-share market capitalization, indicating a shift in market dynamics [1]. - Recent performance of China Yangtze Power has been weak, with its stock price down nearly 10% from its peak [3]. - Analysts suggest that the recent buyback could signal a potential shift back to dividend stocks, as evidenced by other companies like Qin Port Co. also announcing significant share buybacks [4]. Group 3: Analyst Insights - CITIC Securities forecasts that with improved water conditions and reduced depreciation and financial costs, the company's dividends are expected to grow, projecting implied dividend yields of 3.7%, 3.9%, and 4.1% for 2025-2027 [3]. - Multiple brokerages, including Changjiang Securities and GF Securities, have given buy ratings for China Yangtze Power, indicating positive market sentiment [3].