POWERCHINA Ltd(601669) 海通证券·2024-09-01 04:40Investment Rating - The report maintains an "Outperform" rating for the company [5] Core Views - The company is transitioning from a traditional hydropower leader to a new energy investment and operator, with accelerated upgrades in traditional industries and continuous efforts in new energy sector layout [5] - The company achieved revenue of 285.383 billion yuan in H1 2024, a year-on-year increase of 1.29%, with net profit attributable to the parent company of 6.338 billion yuan, a year-on-year decrease of 6.49% [5] - New energy power investment and operation revenue reached 5.43 billion yuan, a year-on-year increase of 7.79%, accounting for 1.91% of main business revenue [5] - The company's gross profit margin increased by 0.26 percentage points to 12.27% in H1 2024, with new energy power investment and operation gross margin increasing by 0.63 percentage points to 56.32% [5] - The company's new contracts signed from January to July 2024 reached 705.757 billion yuan, a year-on-year increase of 7.80%, with energy power new contracts increasing by 20.89% [5] - The company's installed capacity reached 28.14 million kilowatts by the end of June 2024, with wind power installed capacity of 8.99 million kilowatts and solar power installed capacity of 8.11 million kilowatts [5] Financial Performance - The company's revenue in 2023 was 609.408 billion yuan, with a net profit attributable to the parent company of 12.988 billion yuan [5] - The company's revenue is expected to reach 733.636 billion yuan in 2025, with a net profit attributable to the parent company of 15.451 billion yuan [5] - The company's gross profit margin is expected to remain at 13.4% from 2024 to 2026 [5] - The company's net profit margin is expected to increase from 2.1% in 2023 to 2.2% in 2026 [5] - The company's ROE is expected to increase from 8.1% in 2023 to 8.7% in 2026 [5] Valuation and Forecast - The company's EPS is expected to increase from 0.75 yuan in 2023 to 1.01 yuan in 2026 [5] - The company's P/E ratio is expected to decrease from 6.75 in 2023 to 5.06 in 2026 [5] - The company's P/B ratio is expected to decrease from 0.55 in 2023 to 0.44 in 2026 [5] - The company's dividend yield is expected to increase from 2.7% in 2023 to 3.6% in 2026 [5] Industry Comparison - The average P/E ratio of comparable companies is 11.0 for 2023, 9.7 for 2024E, and 8.6 for 2025E [7] - The average P/B ratio of comparable companies is 0.84 for 2024E [7] - The average EPS of comparable companies is 0.52 yuan for 2023, 0.58 yuan for 2024E, and 0.65 yuan for 2025E [7]