中国电建：从电站及矿看电建重估价值

Investment Rating - The investment rating for the company is "Buy" with a target price of 8.5 CNY, indicating a potential upside of 55% from the current price of 5.48 CNY [1][2][33]. Core Insights - The company is expected to benefit significantly from the development of the Yarlung Tsangpo River downstream hydropower projects, with an estimated investment of approximately 1,026.1 billion CNY [11][18]. - The company has shown strong growth in new contract signings, particularly in the energy and power sector, with a year-on-year increase of 6.78% in new contracts signed from January to May 2024 [11][17]. - The company maintains a robust investment strategy in renewable energy, planning to invest 138.9 billion CNY in 2024, with a focus on clean energy projects [12][20]. Summary by Sections 1. Engineering and Surveying Business - The energy and power sector remains highly prosperous, with the company securing new contracts worth 11,428.44 billion CNY in 2023, a year-on-year increase of 13.24% [11][17]. - The company is a leader in the hydropower construction market, handling over 80% of domestic large and medium-sized hydropower station planning and design tasks [11][18]. 2. Power Investment and Operations - As of the end of 2023, the company had a controlled grid-connected installed capacity of 27,188.5 MW, a 33.4% increase year-on-year [12][20]. - The company’s power investment and operations business achieved revenue of 23.978 billion CNY in 2023, with a gross margin of 44.4% [21][22]. - The company plans to invest 86.5 billion CNY in the energy power sector in 2024, reflecting a 44.99% increase year-on-year [20]. 3. Mining Sector - The company holds a 25.28% stake in Huagang Mining, which has shown a compound annual growth rate (CAGR) of 41.1% in investment returns from 2019 to 2023 [13][29]. - The copper market is expected to benefit from tight supply and increasing demand, positioning the company to gain from rising copper prices [29][31]. 4. Green Sand and Aggregate Business - The company is the largest holder of sand and gravel resources in China, with a total resource reserve of 8.934 billion tons and a designed production capacity of 505 million tons per year [32][33]. - The company aims to enhance its brand influence in the green sand and aggregate sector by developing a complete green sand supply chain [32][33].