CYPC(600900) 长江证券·2024-11-06 01:54Investment Rating - The report maintains a "Buy" rating for the company [6][5] Core Insights - The company has shown resilience in its hydropower generation, achieving a 15.05% year-on-year increase in electricity generation for the third quarter, totaling 115.96 billion kWh [3][4] - The company's revenue for the third quarter reached 31.52 billion yuan, reflecting a 17.27% year-on-year growth, with a gross profit margin of 70.93%, up by 3.86 percentage points [3][4] - The company has optimized its asset structure, resulting in a 10.69% year-on-year decrease in financial expenses, and investment income increased by 17.38% to 1.374 billion yuan [3][4] - The net profit attributable to shareholders for the third quarter was 16.663 billion yuan, marking a 31.81% year-on-year increase [3][4] Summary by Sections Revenue and Profitability - The company reported a total revenue of 31.52 billion yuan for Q3 2024, a 17.27% increase year-on-year, and a net profit of 16.663 billion yuan, up 31.81% year-on-year [3][4] - The gross profit margin reached 70.93%, an increase of 3.86 percentage points compared to the previous year [3][4] Hydropower Generation - The company experienced favorable water inflow, with a total water volume of 888.52 million cubic meters for the Wudongde Reservoir, a 12.56% increase year-on-year, and 3,131.10 million cubic meters for the Three Gorges Reservoir, a 20.26% increase year-on-year [3][4] - The electricity generation for the first three quarters was 2,358.14 billion kWh, a 15.97% increase year-on-year [3][4] Market and Pricing - The report highlights the ongoing market reforms that are expected to support long-term electricity prices, particularly in regions with high hydropower marketization [4] - The company is expected to benefit from a stable pricing mechanism for its electricity sales, which has been adjusted to include a floating price component [4] Future Outlook - The company is projected to have earnings per share (EPS) of 1.39 yuan, 1.42 yuan, and 1.51 yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 20.12, 19.76, and 18.55 [5][6]