CYPC(600900) 广发证券·2024-09-05 06:10Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company is expected to see a 29% year-on-year increase in performance for the first half of 2024, driven by improved water inflow and reduced costs [2]. - The company achieved a revenue of 34.808 billion yuan in H1 2024, a 12.38% increase year-on-year, and a net profit attributable to shareholders of 11.362 billion yuan, a 27.92% increase year-on-year [2][9]. - The report highlights the company's commitment to a 70% dividend payout ratio during the 14th Five-Year Plan, indicating stable dividend expectations [2][26]. Summary by Sections 1. Performance Improvement - The company reported a significant increase in net profit for H1 2024, with a 27.9% year-on-year growth, attributed to better water inflow and a low base from the previous year [9]. - The total power generation reached 1,206 billion kWh, a 16.9% increase year-on-year, with Q2 showing a remarkable 42.5% increase [2][16]. 2. Water Inflow and Power Generation - The report notes that the recovery of water inflow has led to a substantial increase in power generation, with plans to achieve 3,074 billion kWh in 2024 under normal water conditions [2][16]. - The company has implemented a six-reservoir joint dispatch system to optimize power generation and mitigate water inflow fluctuations [19]. 3. Investment and Growth - The company is actively investing in domestic hydropower companies, with investment income increasing by 8.9% year-on-year in H1 2024 [2]. - The report emphasizes the company's strategy to develop integrated wind and solar power projects alongside hydropower, with a total installed capacity of nearly 2.65 million kW as of H1 2024 [22][25]. 4. Financial Projections - The company is projected to achieve net profits of 34.255 billion yuan, 35.907 billion yuan, and 38.125 billion yuan for the years 2024 to 2026, respectively [26]. - The report suggests a price-to-earnings (P/E) ratio of 23 for 2024, leading to a target price of 32.20 yuan per share [4][26].