CN GREEN ELECTRICITY(SZ:000537) Minsheng Securities·2024-10-30 21:00Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [2][4]. Core Views - The company reported better-than-expected performance with a clear increase in installed capacity growth. For the first three quarters of 2024, the company achieved operating revenue of 2.924 billion yuan, a year-on-year increase of 3.35%, and a net profit attributable to shareholders of 916 million yuan, a year-on-year increase of 13.31% [2][3]. - Cost reduction and efficiency improvement measures have shown significant results, with the expense ratio for the first three quarters of 2024 at 17.42%, down 1.65 percentage points year-on-year. The gross profit margin for the same period was 59.23%, an increase of 2.68 percentage points year-on-year [2][3]. - The company has seen a substantial increase in power generation due to new installed capacity, with Q3 2024 power generation reaching 3.14 billion kWh, a year-on-year increase of 39.68% [2][3]. - The company is deepening its projects in the Xinjiang large base, with a rich reserve of resources. It has obtained new energy project indicators totaling 10.549 million kW in various regions, with a significant portion from Xinjiang [2][3]. Financial Summary - For 2024, the company is expected to achieve a net profit attributable to shareholders of 1.058 billion yuan, with an EPS of 0.51 yuan, corresponding to a PE ratio of 18 times based on the closing price on October 29 [2][3]. - The projected operating revenue for 2024 is 5.226 billion yuan, with a growth rate of 41.6% [3][5]. - The company’s net profit is expected to grow at rates of 15.1%, 28.3%, and 24.6% for the years 2025 and 2026, respectively [3][5].