HDPI(SH:600027) Guoxin Securities·2024-11-03 04:42Investment Rating - The investment rating for the company is "Outperform the Market" [5][16][20] Core Views - The company reported a stable performance in Q3 2024, with a year-on-year decline in revenue but an increase in net profit attributable to shareholders. Revenue for the first three quarters of 2024 was CNY 84.811 billion, down 6.52%, while net profit attributable to shareholders was CNY 5.156 billion, up 14.63% [1][6] - The company is set to enhance its earnings per share (EPS) through an asset acquisition plan, which includes purchasing 80% of Jiangsu Company and several other assets for a total consideration of CNY 7.167 billion. This transaction is expected to increase the company's EPS from CNY 0.3472 to CNY 0.3688, representing a 6.22% increase [2][15] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of CNY 84.811 billion, a decrease of 6.52% year-on-year, while net profit attributable to shareholders was CNY 5.156 billion, an increase of 14.63%. The third quarter alone saw a revenue of CNY 31.630 billion, up 1.13%, and net profit of CNY 1.933 billion, up 0.87% [1][6] - The decline in revenue was primarily due to a decrease in power generation and grid electricity prices. The average grid electricity price was CNY 510.46 per MWh, down 1.46% [1][6] Asset Acquisition - The company announced a plan to acquire assets from China Huadian, which includes purchasing 80% of Jiangsu Company and several other stakes for a total of CNY 71.67 billion. The share issuance price is set at CNY 5.05 per share, and the acquisition is expected to enhance the company's EPS significantly [2][15] Earnings Forecast - The company maintains its profit forecast, expecting net profits of CNY 6.071 billion, CNY 6.753 billion, and CNY 7.421 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 34.3%, 11.2%, and 9.9% [16][18] - The projected EPS for the same years is CNY 0.59, CNY 0.66, and CNY 0.73, with corresponding price-to-earnings ratios (PE) of 9.2, 8.3, and 7.5 [16][18]