SDIC Power(600886) 长城证券·2024-09-05 09:11Investment Rating - The report maintains a "Buy" rating for Guotou Electric Power, expecting a price increase of over 15% relative to the industry index within the next six months [12]. Core Views - The company's hydropower fundamentals remain solid in H1 2024, while cost reductions in thermal power have improved profitability [1]. - The report anticipates revenue growth from 62.39 billion yuan in 2024 to 69.60 billion yuan in 2026, with net profit expected to rise from 7.74 billion yuan to 9.41 billion yuan during the same period [2]. - The complementary advantages of various power sources and the rhythm of project planning and implementation will sustain growth [2]. Financial Performance Summary - In H1 2024, the company achieved operating revenue of 27.102 billion yuan, a year-on-year increase of 2.79%, and a net profit of 3.744 billion yuan, up 12.19% year-on-year [1]. - For Q2 2024, the company reported operating revenue of 12.994 billion yuan, a decrease of 0.89% year-on-year, and a net profit of 1.708 billion yuan, down 0.87% year-on-year [1]. - The hydropower generation from the Yalong River increased by 37.24% in Q2 2024, while the average on-grid electricity price decreased by 9.65% [2]. - The thermal power generation decreased by 10.82% in Q2 2024, but profitability improved due to lower fuel costs [2]. Future Projections - The report projects operating revenues of 62.39 billion yuan, 66.74 billion yuan, and 69.60 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 7.74 billion yuan, 8.76 billion yuan, and 9.41 billion yuan [2]. - The expected EPS for 2024, 2025, and 2026 are 1.04 yuan, 1.17 yuan, and 1.26 yuan, respectively, with P/E ratios of 14.8, 13.1, and 12.2 [2].