CYPC(600900) 财通证券·2024-08-11 08:23Investment Rating - The report initiates coverage with an "Overweight" rating for the company [1] Core Views - The company operates six major hydropower stations along the Yangtze River, solidifying its position as the leader in the hydropower industry with a total installed capacity of 71.8GW and annual power generation of 2762.63 billion kWh in 2023 [3] - The acquisition of Wudongde and Baihetan hydropower stations in 2023 increased the company's total installed capacity by 57.46% to 71.8GW and design power generation capacity by 52.83% to 2932.03 billion kWh [3] - The company is actively expanding capacity at Xiluodu, Xiangjiaba, and Gezhouba stations, with an expected additional capacity of 3.9GW, potentially accelerating in 2024 [3] - The six-station joint dispatch is expected to increase annual power generation by 60-70 billion kWh, leveraging improved water inflow and optimized pricing mechanisms [3] - The company maintains strong profitability with a 2023 dividend payout ratio of 73.66% and a dividend yield of 3.9%, ranking among the top in the industry [3] - The company's investment income as a percentage of net profit attributable to shareholders increased to 22.70% in Q1 2024 [3] Financial Projections - The company is expected to achieve revenues of 87.308 billion yuan, 89.262 billion yuan, and 90.794 billion yuan in 2024, 2025, and 2026, respectively, with net profits attributable to shareholders of 34.739 billion yuan, 36.286 billion yuan, and 37.116 billion yuan [3] - The projected PE ratios for 2024, 2025, and 2026 are 20.81x, 19.92x, and 19.47x, respectively [3] Industry Position - The company is the largest hydropower operator in China, with its six stations forming the world's largest clean energy corridor [8] - The company's installed capacity accounts for 17.34% of China's total hydropower capacity, and its power generation represents 21.48% of the national total in 2023 [8] - The company's hydropower assets are located along the Yangtze River, with a significant portion of power generation concentrated in the flood season from May to October [16] Expansion and Development - The company is actively pursuing pumped storage and new energy projects, with a focus on the downstream Jinsha River base for integrated water, wind, and solar energy development [32] - The company has a pumped storage project pipeline of nearly 42GW, equivalent to two Three Gorges stations, and is accelerating the development of these projects [32] - The company is also expanding internationally, with investments in overseas power distribution and clean energy projects, including the acquisition of Luz del Sur in Peru [34] Financial Performance - The company's hydropower business is expected to generate revenues of 77.391 billion yuan, 78.634 billion yuan, and 79.232 billion yuan in 2024, 2025, and 2026, respectively, with gross margins of 64.05%, 64.67%, and 64.91% [36] - The company's international, power distribution, and smart energy businesses are projected to achieve revenues of 9.48 billion yuan, 10.428 billion yuan, and 11.262 billion yuan in 2024, 2025, and 2026, respectively, with a stable gross margin of 35% [36]