CYPC(SH:600900) Huafu Securities·2024-09-01 08:18Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 20% relative to the market benchmark index within the next six months [15]. Core Views - The company reported a revenue of 34.808 billion yuan for the first half of 2024, a year-on-year increase of 12.38%, and a net profit attributable to shareholders of 11.362 billion yuan, up 27.92% year-on-year [2]. - Improved water inflow conditions have led to a significant increase in electricity generation, with the company achieving record high outputs in several hydropower stations [3]. - The company is actively advancing its pumped storage and photovoltaic operations, with successful management of multiple projects and a focus on enhancing international business [4]. - Revenue forecasts for 2024-2026 are projected at 87.581 billion yuan, 88.059 billion yuan, and 88.559 billion yuan respectively, with net profits expected to be 35.012 billion yuan, 36.453 billion yuan, and 37.841 billion yuan [5]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 19.167 billion yuan, representing a 26.29% year-on-year growth, and a net profit of 7.395 billion yuan, up 40.35% year-on-year [2][3]. - The upstream water inflow from the Wudongde reservoir was approximately 21.811 billion cubic meters, a 29.7% increase year-on-year, while the downstream Three Gorges reservoir saw inflow of about 98.174 billion cubic meters, a 36.9% increase year-on-year [3]. Operational Developments - The company has taken over the operation and maintenance of the Zhejiang Changlongshan pumped storage power station, achieving zero unplanned outages and maintaining safety standards [4]. - The company has also initiated power production preparations at the Tian Tai pumped storage power station and completed investment decisions for other projects [4]. Profitability and Valuation - The report maintains previous profit forecasts, with expected P/E ratios of 20.5, 19.7, and 19.0 for the years 2024, 2025, and 2026 respectively [5]. - The company’s financial metrics indicate a gross margin of 57.8% and a net margin of 35.8% for 2023, with projected improvements in subsequent years [12].