SCTE(SH:600674) Great Wall Securities·2025-04-16 14:13Investment Rating - The report maintains a rating of "Accumulate" for the company [6]. Core Views - The company's revenue for 2024 is projected to be 1,609 million yuan, representing a year-over-year growth of 8.5%, while the net profit attributable to shareholders is expected to be 4,508 million yuan, with a growth of 2.4% [2]. - The improvement in water inflow and enhanced operational capabilities have led to a dual increase in both electricity generation and pricing [2]. - The company has seen a significant increase in electricity generation, with total on-grid electricity reaching 57.22 billion kWh, a year-over-year increase of 11.25% [3]. - The financial performance is bolstered by a reduction in financial expenses, which decreased by 25.81% year-over-year, contributing to improved profitability [4]. Financial Summary - Revenue and Profit Forecast: - 2023A: Revenue of 1,482 million yuan, net profit of 4,400 million yuan - 2024A: Revenue of 1,609 million yuan, net profit of 4,508 million yuan - 2025E: Revenue of 1,804 million yuan, net profit of 5,132 million yuan - 2026E: Revenue of 1,971 million yuan, net profit of 5,505 million yuan - 2027E: Revenue of 1,988 million yuan, net profit of 5,790 million yuan [1][10]. - Key Financial Ratios: - ROE is projected to be 10.6% in 2024, with EPS expected to be 0.92 yuan [1][10]. - The company’s P/E ratio is expected to decrease from 18.5 in 2023 to 14.0 by 2027, indicating a potential increase in valuation attractiveness [1][10]. Operational Highlights - The company has successfully increased its average utilization hours for hydropower plants, with significant improvements noted in the Tianwan River and ChuanTou Electric Power plants [2]. - The average on-grid electricity price for hydropower increased by 3.92% year-over-year, contributing positively to revenue [3]. - The company has made substantial capital investments in quality hydropower enterprises, indicating a strategic focus on enhancing operational capacity and profitability [4].