SDIC Power(SH:600886) Great Wall Securities·2024-09-20 04:13Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [8]. Core Views - The company is projected to achieve operating revenues of 623.93 billion, 667.37 billion, and 695.96 billion CNY for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 77.40 billion, 87.56 billion, and 94.08 billion CNY, reflecting year-on-year growth rates of 15.4%, 13.1%, and 7.4% [1][2]. - The introduction of 7 billion CNY from social security funds is expected to enhance the dividend payout ratio to 55%, indicating a commitment to shareholder returns [2]. - The company plans to invest 34.65 billion CNY in clean energy projects, which will alleviate financial pressure and improve its debt ratio, reducing the debt ratio from 63.82% to 62.29% post-fundraising [2][3]. Financial Summary - For the fiscal year 2022, the company reported operating income of 50,489 million CNY, which is expected to grow to 56,712 million CNY in 2023, and further to 62,393 million CNY in 2024, with a year-on-year growth rate of 15.4% [2][4]. - The net profit attributable to the parent company was 4,081 million CNY in 2022, projected to rise to 6,705 million CNY in 2023 and 7,740 million CNY in 2024, with growth rates of 66.2% and 15.4%, respectively [2][4]. - The company's return on equity (ROE) is expected to improve from 8.2% in 2022 to 12.9% in 2024, indicating enhanced profitability [4]. Project Development - The funds raised will be allocated to the construction of the Mengdigou/Kala hydropower stations, which are expected to generate an average annual power output of 10.4 billion kWh and 4.524 billion kWh, respectively [2][3]. - The financial internal rate of return for the projects is estimated at 8%, with a payback period of approximately 20.4 years for Mengdigou and 19.06 years for Kala, suggesting a favorable economic outlook for these investments [2].