GGEP(SH:600236)2024-08-27 09:02Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported significant improvements in hydropower performance and rapid growth in renewable energy [5] - The company achieved a revenue of 4.83 billion yuan in the first half of 2024, a year-on-year increase of 16.25%, and a net profit of 1.44 billion yuan, up 57.40% year-on-year [5] - The company plans to distribute a cash dividend of 0.85 yuan per 10 shares, amounting to 670 million yuan, which represents 46.61% of the net profit attributable to shareholders in the first half of 2024 [5] Summary by Sections Financial Performance - In the first half of 2024, the company generated a total electricity output of 175.79 billion kWh, a year-on-year increase of 19.48%, with hydropower output reaching 143.97 billion kWh, up 27.05% [5] - The gross profit from hydropower increased by 51.32% to 1.92 billion yuan, driven by improved water inflow and market conditions [5] - The company’s fire power generation decreased by 25.09% to 1.63 billion kWh due to favorable water conditions [5] Renewable Energy Growth - As of June 30, 2024, the company’s installed capacity for wind and solar power increased by 5.64 and 21.93 MW respectively, bringing the total to 848.1 MW and 883.8 MW [5] - The contribution of renewable energy to total generation capacity rose to 13.02%, with wind and solar power generation increasing by 14.87% and 97.75% respectively [5] Financial Structure and Cost Management - The company’s debt-to-asset ratio improved to 53.31%, a decrease of 2.05 percentage points from the end of 2023 [5] - The comprehensive financing cost rate fell to 2.6%, leading to a 3.46% reduction in financial expenses to 277 million yuan [5] Profit Forecast and Valuation - The company’s net profit forecasts for 2024, 2025, and 2026 are 3.045 billion yuan, 3.201 billion yuan, and 3.459 billion yuan respectively, with corresponding price-to-earnings ratios of 17, 17, and 15 [5]