SDIC Power(SH:600886) HTSC·2024-09-18 06:03Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 17.81 [1][6]. Core Views - The introduction of strategic investment from the National Social Security Fund (NSSF) is expected to enhance the company's long-term investment value, with a commitment to increase the dividend payout ratio to 55% for the years 2024-2026, up from 50% [1][3]. - The company plans to raise up to RMB 7 billion through stock issuance, with the NSSF becoming the third-largest shareholder, holding 6.88% of the company post-issuance [1][3]. - The projected net profit for the company is estimated at RMB 79 billion, RMB 90 billion, and RMB 97 billion for the years 2024, 2025, and 2026 respectively [1]. Financial Summary - The company's revenue is projected to grow from RMB 50.49 billion in 2022 to RMB 67.13 billion in 2026, reflecting a compound annual growth rate (CAGR) of approximately 6.5% [4][12]. - The net profit attributable to the parent company is expected to increase significantly from RMB 4.08 billion in 2022 to RMB 9.67 billion in 2026, indicating a strong growth trajectory [4][12]. - The earnings per share (EPS) is forecasted to rise from RMB 0.55 in 2022 to RMB 1.30 in 2026, showcasing improved profitability [4][12]. Project Investment - The company plans to allocate RMB 70 billion for investment, with RMB 45 billion and RMB 25 billion designated for the construction of the Mengdigou and Karala hydropower stations, respectively [2]. - The expected average annual power generation for these projects is projected to reach 104.05 billion kWh and 45.238 billion kWh, with internal rates of return on capital of 8% [2].