WENERGY CO.,LTD.(000543)2024-10-28 15:02Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [5] Core Views - The company achieved a revenue of 22.541 billion with a year-on-year growth of 11.52% for the first three quarters of 2024, and a net profit attributable to shareholders of 1.583 billion, up 21.29% year-on-year [3] - The third quarter saw a revenue of 8.540 billion, a year-on-year increase of 7.07%, but a net profit decline of 28.88% year-on-year, primarily due to non-operating factors [3] - The company expects a 10% growth in electricity generation for the entire year of 2024, supported by strong electricity demand in Anhui province [3] - New operational units are expected to contribute to revenue growth, with a projected increase in installed capacity in the coming years [3] Summary by Relevant Sections Financial Performance - For the first three quarters of 2024, the company reported a total revenue of 22.541 billion, a net profit of 1.583 billion, and a basic EPS of 0.6982, reflecting a year-on-year increase of 21.30% [3] - The third quarter's net profit was 0.512 billion, down 28.88% year-on-year, influenced by fixed asset impairment and increased tax expenses [3] Electricity Generation and Demand - The company anticipates a 10% increase in electricity generation for 2024, with strong demand evidenced by a 13.4% year-on-year growth in electricity consumption in Anhui province [3] - The company’s electricity generation in the third quarter was 59.9, 64.7, and 47 billion kWh, with an average grid connection rate of around 94% [3] Future Growth and Capacity Expansion - As of June 2024, the company’s total installed capacity exceeded 19 million kW, with significant contributions from new coal and renewable energy projects [3] - The company is set to benefit from new projects coming online, including coal and gas-fired power plants, which are expected to enhance profitability [3] Investment Projections - The report forecasts net profits of 1.801 billion, 2.098 billion, and 2.243 billion for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.79, 0.93, and 0.99 [4][6] - The projected PE ratios for 2024, 2025, and 2026 are 10, 8, and 8 times respectively, indicating a favorable valuation outlook [4][6]