CYPC(SH:600900) SINOLINK SECURITIES·2024-10-31 06:54Investment Rating - The investment rating for Changjiang Electric Power is "Buy" (maintained) [2] Core Views - The company reported significant growth in revenue and net profit for Q3 2024, with revenue reaching 66.33 billion RMB, up 14.7% year-on-year, and net profit of 28.02 billion RMB, up 30.2% year-on-year [2] - Improved water inflow conditions led to a 15.1% increase in power generation in Q3 2024, with total power generation reaching 115.2 billion kWh [2] - The average on-grid electricity price is expected to rise, contributing to revenue growth that outpaced power generation growth [2] - The company plans to invest over 2 billion RMB in R&D in 2024, focusing on hydropower scheduling, operation, maintenance, and smart hydropower construction [2] - The company’s financial expenses decreased by approximately 310 million RMB year-on-year, indicating effective debt management [2] Summary by Sections Performance Analysis - For Q3 2024, the company achieved revenue of 31.52 billion RMB, a year-on-year increase of 17.3%, and net profit of 16.66 billion RMB, up 31.8% [2] - The total water inflow for the Wudongde and Three Gorges reservoirs increased by 12.6% and 20.3% respectively compared to the same period last year [2] - The sales gross margin reached approximately 70.9%, reflecting a 3.9 percentage point increase year-on-year [2] Financial Forecast and Valuation - The company is expected to achieve net profits of 33.1 billion RMB, 36.0 billion RMB, and 37.25 billion RMB for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 1.35 RMB, 1.47 RMB, and 1.52 RMB [2] - The current stock price corresponds to PE valuations of 20x, 19x, and 18x for the years 2024, 2025, and 2026 respectively [2]