Huaneng Hydropower(600025) 长江证券·2025-01-10 01:53Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company's hydropower generation is expected to achieve a steady growth in 2024, with a total generation of 107.93 billion kWh, representing a year-on-year increase of 2.53%. Additionally, the new energy generation is projected to reach 112.01 billion kWh, an increase of 4.62% year-on-year [2][5] - The electricity price in Yunnan province is anticipated to rise due to the easing of previous price constraints and ongoing tight supply-demand conditions, which will support the company's overall performance in 2024 [2][10] - The company is expanding its installed capacity, with new units coming online, which will contribute to the growth in electricity generation [10] Summary by Sections Installed Capacity Expansion and Steady Growth - The company has seen a slight improvement in water inflow, with the hydropower generation reaching 107.93 billion kWh in 2024, a 2.53% increase year-on-year. The original hydropower generation, excluding new units, is expected to decrease slightly by 0.22% [10] - The company’s wind power generation is projected to reach 0.417 billion kWh, a 6.92% increase, while solar power generation is expected to surge by 160.37% to 3.666 billion kWh due to increased installed capacity [10] Positive Outlook for Annual Performance - The overall performance outlook for the company in 2024 is positive, supported by both volume and price increases. The expected rise in market transaction prices in Yunnan will further enhance revenue [10][11] Diversified Expansion for Long-term Growth - The company is actively expanding its capacity, with new units at the Toba and Huanliangbao hydropower stations now operational. Additionally, a joint venture is planned to develop an integrated coal and new energy project, which will further secure growth during the 14th Five-Year Plan period [10][11] Financial Projections - The company’s earnings per share (EPS) are projected to be 0.45 yuan, 0.46 yuan, and 0.55 yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 19.92, 19.53, and 16.52 [10]