CHINA POWER(02380) 长江证券·2024-10-08 02:16Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company is set to become a key platform for hydropower asset integration under the National Energy Investment Group, with significant potential for valuation support due to the higher valuation of hydropower assets in the A-share market compared to the Hong Kong market [4][5]. - The company has shown a strong recovery in operational performance, with a 51.50% year-on-year increase in profit attributable to equity holders, reaching 2.802 billion yuan in the first half of the year [4]. - A special dividend of 0.05 yuan per share has been announced to celebrate the company's 20th anniversary, alongside a commitment to a minimum 50% payout ratio, enhancing the investment appeal [4]. Summary by Sections Asset Restructuring - The company plans to inject its controlling stakes in subsidiaries, including Wuling Power and Guodian Investment Guangxi Changzhou Hydropower, into Far East Environmental Protection, establishing it as a hydropower asset integration platform for Guodian Investment [4]. - The restructuring is expected to solidify the company's position as a comprehensive clean energy flagship platform, with further hydropower assets likely to be injected in the future [4]. Financial Performance - The company achieved a profit of 2.802 billion yuan in the first half of the year, marking a 51.50% increase year-on-year, driven by improved coal prices and steady growth in clean energy business [4]. - The operational performance is expected to continue its recovery, supported by high growth in hydropower and easing pressure on thermal power generation [4]. Future Outlook - The company is projected to achieve profits of 5.004 billion, 6.046 billion, and 7.157 billion yuan for the years 2024 to 2026, with corresponding EPS of 0.40 yuan, 0.49 yuan, and 0.58 yuan, indicating strong growth potential [5]. - The report emphasizes the company's attractive valuation with PE ratios of 8.63, 7.14, and 6.03 for the same period, suggesting a favorable investment opportunity [5].