SCTE(600674) 申万宏源·2024-10-15 12:41Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a revenue of 1.087 billion yuan for the first three quarters of 2024, a year-on-year increase of 6.48%, and a net profit attributable to shareholders of 4.422 billion yuan, up 15.10% year-on-year. The net profit for Q3 alone was 2.120 billion yuan, reflecting a growth of 21.55% year-on-year, which aligns with expectations [4] - The company plans to increase its investment in its associate companies, including a 7.2 billion yuan investment in Yalong River Hydropower Development Co., Ltd. (holding 48%) and a 248 million yuan investment in Guoneng Dadu River Hydropower Development Co., Ltd. (holding 20%) [4] - The company experienced a favorable water supply and increased electricity prices during the flood season, leading to improved profitability in hydropower operations. From January to September 2024, the company generated 4.345 billion kWh of electricity, a year-on-year increase of 8.87%, with hydropower generation at 4.119 billion kWh, up 8.00% [4] - Investment income rose by 11% year-on-year to 4.505 billion yuan, benefiting from improved water supply and higher electricity prices [4] - The company forecasts net profits of 5.151 billion yuan, 5.491 billion yuan, and 5.981 billion yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 17, 16, and 15 [4] Financial Summary - For the first three quarters of 2024, total revenue is projected at 1.578 billion yuan, with a year-on-year growth rate of 6.5%. The net profit attributable to shareholders is expected to be 5.151 billion yuan, reflecting a growth rate of 17.1% [5] - The average on-grid electricity price for hydropower increased by 2.55% year-on-year, supporting the company's performance [4] - The company maintains a dividend commitment of no less than 0.4 yuan per share, resulting in a current dividend yield of 2.2% based on the closing price on October 14 [4]