POWERCHINA Ltd(601669) 长江证券·2024-11-15 01:07Investment Rating - The investment rating for China Electric Power Construction Group (601669.SH) is "Buy" and is maintained [8]. Core Views - On November 13, China Electric Power Construction Group announced a large-scale tender for photovoltaic components, inverters, and energy storage systems for the 2025 framework procurement project, which is expected to significantly boost the company's new energy installation targets for 2025 [3][4]. - The company aims to achieve a total installed capacity of 51GW by 2025, which includes both self-invested projects and externally contracted projects [3]. - The company has set ambitious targets for new energy installations during the 14th Five-Year Plan, with a goal of adding 30GW of wind and solar capacity, which could potentially increase the installed capacity to between 46GW and 64.6GW by the end of 2025 [4][5]. - The recent large-scale tender is anticipated to accelerate the implementation of the company's installation plans, although actual installed capacity may be lower due to the demand from the company's EPC (Engineering, Procurement, and Construction) business [5]. - The company signed new contracts worth 159.201 billion yuan for solar power projects in the first half of 2024, indicating a significant demand for photovoltaic components [5]. - The company is positioned to benefit from recent policies promoting a new power system and green transformation, which are expected to drive growth in its new energy and pumped storage sectors [6]. Summary by Sections Event Description - On November 13, the company released a tender announcement for the 2025 procurement of photovoltaic components, inverters, and energy storage systems [3]. Event Commentary - The scale of the tender is substantial and is likely to propel the company's new energy installation targets for 2025 [3]. - The company has set a total installed capacity target of 51GW for 2025, which includes both self-invested and contracted projects [3]. - The company has previously outlined a goal of adding 30GW of new energy capacity during the 14th Five-Year Plan, with a breakdown target of 48.5GW for its subsidiaries, exceeding the overall target by 18.5GW [4]. - As of June 2024, the company had an installed capacity of 28.14 million kilowatts, with significant year-on-year growth in solar power installations [4]. Financial Projections - The company projects total revenue of 648.052 billion yuan for 2024, increasing to 733.137 billion yuan by 2026, with a net profit forecast of 17.665 billion yuan in 2024 and 19.788 billion yuan in 2026 [10].