CYPC(SH:600900) Huafu Securities·2024-08-05 13:30Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][50]. Core Views - The company has strengthened its core hydropower operations through the acquisition of the Wudongde and Baihetan hydropower stations, enhancing its capacity to manage six reservoirs [3][15]. - The company has achieved significant international business success, with a net profit of 1.45 billion yuan in 2023, and is progressing steadily with overseas projects [3][20]. - The company is actively developing a "water-wind-solar-storage" integrated energy base, with both photovoltaic and energy storage capacities exceeding 1 GW in 2023 [3][25]. Summary by Sections 1. Company Overview - The company is the largest hydropower company globally, managing six major hydropower stations along the Yangtze River, with a total installed capacity of 71.7 million kW [15][16]. - In 2023, the company’s market capitalization surpassed 580 billion yuan, maintaining its leading position among domestic power companies [15]. 2. Financial Performance - The company reported a net profit of 2.72 billion yuan in 2023, with a significant increase in cash flow, allowing for a stable high dividend payout [4][25]. - The company plans to distribute cash dividends of no less than 0.65 yuan per share from 2016 to 2020 and at least 70% of net profit from 2021 to 2025 [4][25]. 3. Industry Outlook - The hydropower sector is experiencing a recovery, with a 2.2% year-on-year increase in national hydropower generation in Q1 2024 [5][30]. - The company is well-positioned to benefit from the anticipated increase in electricity prices due to policy adjustments and the growing demand for clean energy [5][38]. 4. Profit Forecast and Investment Recommendations - Revenue forecasts for 2024, 2025, and 2026 are 87.58 billion, 88.06 billion, and 88.56 billion yuan, respectively, with corresponding net profits of 35.01 billion, 36.45 billion, and 37.84 billion yuan [6][50]. - The report suggests that the company’s earnings per share (EPS) will be 1.43, 1.49, and 1.55 yuan for the years 2024, 2025, and 2026, respectively [6][50].