wsdl(600995) HTSC·2024-09-02 00:03Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 11.34 [1][2][6]. Core Views - The company's peak hydropower generation has significantly increased by 11.8% year-on-year due to improved water inflow, while pumped storage performance remained stable [2][3]. - The company reported a revenue of RMB 29.11 million and a net profit attributable to the parent company of RMB 6.26 million for the first half of 2024, reflecting a year-on-year increase of 1.76% in revenue but a decrease of 9.58% in net profit [2][3]. - The forecasted net profit for 2024-2026 is RMB 10.36 million, RMB 13.45 million, and RMB 17.27 million respectively, with corresponding EPS of RMB 0.32, RMB 0.42, and RMB 0.54 [2][3]. Summary by Sections Revenue and Profit - In 1H24, the company achieved a revenue of RMB 29.11 million, with a net profit of RMB 6.26 million, marking a year-on-year revenue increase of 1.76% and a net profit decrease of 9.58% [2][3]. - The revenue from peak hydropower increased by 11.65% to RMB 7.15 million in 1H24, while the average tax-inclusive on-grid electricity price remained stable at RMB 0.229 per kWh [3]. Hydropower Generation - The company's peak hydropower generation increased by 11.8% year-on-year in 1H24, with specific plants showing significant growth, such as the Lubuge plant with a 63.35% increase [3]. - In 2Q24, the total peak hydropower generation reached 23.68 billion kWh, representing a 30% year-on-year increase [3]. New Energy Storage - As of June 2024, the company has completed the installation of 423.8 MW/832 MWh of new energy storage capacity, with new projects including the Foshan Baotang and Meizhou Yuezhi electrochemical storage stations [3]. - The revenue from new energy storage business surged by 231.64% year-on-year to RMB 1.38 million in 1H24 [3]. Pumped Storage Revenue - The revenue from pumped storage decreased by 5.48% year-on-year to RMB 20.43 million in 1H24, primarily due to the high base effect from previous capacity prices [4]. - The company anticipates a 10% year-on-year decline in pumped storage revenue for 2024, estimating total revenue of RMB 39.73 million [4]. Financial Projections - The company projects a revenue of RMB 6.347 billion for 2024, with a net profit of RMB 1.036 billion, reflecting a 12.74% increase in revenue and a 2.19% increase in net profit compared to 2023 [7][12]. - The expected PE ratio for 2024 is set at 28.91x, with a projected PB ratio of 1.39x [7][12].