华能水电：雄踞西南，波澜潋光，沧浪逐风

Investment Rating - The report initiates coverage with a "Hold" rating for Huaneng Hydropower [2][62]. Core Views - Huaneng Hydropower is a leading large-scale hydropower enterprise in China, focusing on the development and operation of hydropower and renewable energy resources in the Lancang River basin [12][19]. - The company has completed the 100% equity injection of Huaneng Sichuan Company, significantly enhancing its installed capacity [12][43]. - The company is actively pursuing a "water-wind-solar integration" strategy, with plans to invest in 84 new energy projects in 2024, aiming for an additional 10 million kW of capacity during the 14th Five-Year Plan period [12][45]. Summary by Sections 1. Huaneng's Core Hydropower Platform - Huaneng Hydropower holds the development rights for the main stream of the Lancang River and is responsible for maximizing resource allocation in the basin [12][19]. - The company has a total installed capacity of 29.2032 million kW as of June 2024, ranking first in Yunnan Province [12][19]. 2. Contribution from Sichuan Hydropower and Rising Electricity Prices in Yunnan - In the first half of 2024, the company achieved a power generation of 46.695 billion kWh, a year-on-year increase of 12.15% [2][28]. - The average market transaction electricity price in Yunnan increased by approximately 11.4% in 2023, reaching about 0.252 yuan/kWh [2][38]. 3. Abundant Hydropower Resources in the Lancang River Basin - The Lancang River basin has significant hydropower resources, with a total potential installed capacity estimated at 32 million kW [41][43]. - The company is implementing a "water-wind-solar integration" strategy to optimize cost efficiency and stabilize power output [45]. 4. Profit Forecast and Investment Recommendations - Revenue forecasts for 2024, 2025, and 2026 are 24.55 billion yuan, 27.20 billion yuan, and 28.51 billion yuan, respectively, with corresponding net profits of 8.70 billion yuan, 9.69 billion yuan, and 10.14 billion yuan [2][62]. - The report provides a price-to-earnings (P/E) ratio forecast of 19.5, 17.5, and 16.7 for the years 2024, 2025, and 2026, respectively [62].