SDIC Power(SH:600886) Ge Long Hui·2025-11-14 09:04Core Viewpoint - Guotou Power's net profit for Q1-Q3 2025 is 6.52 billion yuan, showing a year-on-year decrease of 0.9%, with Q3 net profit at 2.72 billion yuan, down 3.9% year-on-year, primarily impacted by fuel costs affecting thermal power performance [1] Financial Performance - The company has shown significant improvement in cash flow and financial expenses [1] - The slowdown in green power construction in 2025 is attributed to the implementation of Document No. 136, which regulates green electricity prices and consumption [1] Project Development - The Yalong River integrated hydropower and wind power base has a long-term flexible adjustment capability due to its experience with large hydropower and pumped storage [1] - Current major renewable energy projects under construction include the Yangniushan Wind Power (600,000 kW) and Zhalashan photovoltaic projects (totaling 3.17 million kW) [1] Investment Outlook - The scarcity of resources at the Yalong River hydropower and wind power base, along with the company's stable dividend commitment (distributing at least 55% of the annual distributable profit in cash from 2024 to 2026), supports a favorable investment outlook [1] - Based on comparable company valuations, a target price of 16.92 yuan is set, applying an 18x PE valuation for 2026, maintaining a "Buy" rating [1]