CYPC(SH:600900) HTSC·2025-05-05 15:50Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 34.74 [7]. Core Views - The company achieved a record high electricity generation in 2024, with revenue of RMB 84.49 billion, a year-on-year increase of 8.12%, and a net profit attributable to shareholders of RMB 32.50 billion, up 19.28% year-on-year [1][2]. - In Q1 2025, the company reported revenue of RMB 17.02 billion, a year-on-year increase of 8.68%, and a net profit of RMB 5.18 billion, up 30.56% year-on-year, exceeding expectations due to higher revenue and lower financial costs [1][3]. - The company is expected to leverage its six reservoir coordination and the potential of upstream projects to enhance electricity generation capacity, aiming for an annual generation of 300 billion kWh in 2025 [2][4]. Summary by Sections Financial Performance - In 2024, the company generated 2,959.04 billion kWh of electricity, a year-on-year increase of 7.11%, with significant contributions from the "Six Reservoir Coordination" project [2]. - The average on-grid electricity price for 2024 is estimated at RMB 0.252 per kWh, reflecting a slight increase from the previous year [2]. Profitability and Costs - The company's financial costs decreased by RMB 3.7 billion in Q1 2025, a reduction of 12.98% year-on-year, attributed to faster debt repayment and debt restructuring [3]. - The company’s net profit margin is projected to improve, with net profit for 2025 estimated at RMB 33.99 billion, reflecting a growth of 4.62% [6]. Valuation Metrics - The report adjusts the depreciation forecast for 2025-2026 upwards by 5.3% and 5.4%, respectively, while lowering the net profit estimates for the same period by 3.0% and 2.9% [4]. - The target price of RMB 34.74 is based on a 25.0x PE ratio for 2025, compared to a previous target of RMB 32.95 based on a 23x PE [4].