SEP(SH:600021) Hua Yuan Zheng Quan·2024-10-18 14:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [4]. Core Insights - The company has reported a significant increase in net profit for the first three quarters of 2024, with an expected range of 2.252 to 2.680 billion yuan, representing a year-on-year growth of 53% to 82% [4]. - The company's performance in the third quarter exceeded market expectations, driven by strong electricity generation from thermal and wind power [4][5]. - The company is positioned as a core power platform in the East China region, benefiting from both profitability flexibility and long-term growth potential [5]. Summary by Sections Financial Performance - The company anticipates a net profit of 2.252 to 2.680 billion yuan for the first three quarters of 2024, with a year-on-year growth of 53% to 82% [4]. - In the third quarter alone, the expected net profit ranges from 0.925 to 1.353 billion yuan, showing a year-on-year increase of 36% to 99% [4]. - The total electricity generation for the third quarter reached 23.1 billion kWh, a 9.7% increase year-on-year, with coal, gas, wind, and solar power contributing to this growth [4]. Operational Highlights - The company has not added new installed capacity for coal, gas, or wind power from September last year to this September, yet it still achieved strong growth in electricity generation [4]. - The strong demand for electricity in the Yangtze River Delta region during high temperatures has significantly contributed to the growth in coal power generation [4]. - The company is the only major thermal and green power operator to forecast positive growth in earnings, attributed to its advantageous asset locations and management efforts [5]. Future Outlook - The company has revised its profit forecasts for 2024-2026, now expecting net profits of 2.661 billion, 2.924 billion, and 3.420 billion yuan respectively [5]. - The estimated price-to-earnings (PE) ratios for 2024-2026 are projected to be 11, 10, and 8 times, respectively [5]. - The company aims to enhance its renewable energy capacity and has set a goal to develop a large-scale clean energy base in the western region [5].