SCTE(SH:600674) Tianfeng Securities·2025-04-18 05:14Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7][4]. Core Views - The company reported a revenue of 1.61 billion yuan in 2024, an increase of 8.5% year-on-year, and a net profit attributable to shareholders of 4.51 billion yuan, up 2.5% year-on-year [1][2]. - In Q1 2025, the company achieved a revenue of 360 million yuan, a significant increase of 41.2% year-on-year, and a net profit attributable to shareholders of 1.48 billion yuan, up 16.2% year-on-year [1][4]. - The decline in investment income in Q4 2024 negatively impacted the overall annual performance, particularly from the Yalong River Hydropower, which saw a net profit decrease of 4.5% year-on-year [2][4]. Financial Performance Summary - For 2024, the Yalong River Hydropower's net profit was 8.27 billion yuan, down 4.5% year-on-year, with a significant drop of approximately 77% in Q4 compared to the same period in 2023 [2]. - The company's Q4 2024 net profit was 86 million yuan, a decrease of 84.6% year-on-year, primarily due to a reduction in investment income from Yalong River Hydropower [2]. - The company expects net profits for 2025-2027 to be 5.08 billion, 5.28 billion, and 5.54 billion yuan respectively, with corresponding P/E ratios of 16.1, 15.5, and 14.8 [4][5]. Operational Highlights - The company’s controlling and equity investments contributed to a profit increase in Q1 2025, with a net profit of 1.48 billion yuan, reflecting a 16.2% year-on-year growth [3][4]. - The operational performance in Q1 2025 was bolstered by the commissioning of the first unit of the Yinjing Hydropower Station, which has a capacity of 390,000 kilowatts [11]. - The company anticipates improved performance from Yalong River Hydropower in Q1 2025, with expected revenue growth driven by increased electricity prices and generation capacity [11].