YEIC(SZ:002053) Guotai Junan Securities·2024-07-02 09:01Investment Rating - The report maintains an "Overweight" rating for Yunnan Energy Investment (002053) with a target price of 16.32 CNY, unchanged from the previous rating [3][4]. Core Views - The completion of the first phase of the Jinzhong Wind Farm has led to a significant increase in electricity generation, with expectations for high growth in annual performance [2][4]. - As of the end of the first half of 2024, the company has installed a total of 1.88 million kW of renewable energy capacity, representing a year-on-year increase of 133%, with wind power capacity up 139% and solar power capacity up 60.6% [4]. - The company aims to achieve full capacity for the second phase of the Jinzhong Wind Farm and the Huhuli photovoltaic project within 2024, with plans for a 670,000 kW wind expansion project to commence construction [4]. - The company reported a net profit of 360 million CNY in Q1 2024, a year-on-year increase of 94.8%, primarily driven by its renewable energy business [4]. Summary by Sections Investment Highlights - The report emphasizes the high growth potential of the company's new projects, particularly in Yunnan province, which has favorable wind energy resources [4]. - The average utilization hours for wind power in Yunnan from 2019 to 2023 were 2,602 hours, exceeding the national average by 435 hours [4]. - The company has signed multiple agreements with its controlling shareholder for a total rated capacity of 1.05 million kW, which will be prioritized for injection into the company once profitability and operational standards are met [4]. Financial Forecast - The report projects earnings per share (EPS) for 2024, 2025, and 2026 to be 1.09 CNY, 1.26 CNY, and 1.58 CNY respectively [4][12]. - The company's total revenue is expected to grow significantly, with projected figures of 4.11 billion CNY for 2024, 4.72 billion CNY for 2025, and 5.51 billion CNY for 2026, reflecting growth rates of 41.7%, 14.7%, and 16.7% respectively [12]. - The net profit attributable to the parent company is forecasted to reach 1 billion CNY in 2024, with a year-on-year growth of 107.3% [12].