POWERCHINA Ltd(SH:601669) Soochow Securities·2025-05-06 10:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a stable revenue growth with a year-on-year increase of 1.6% in Q1 2025, achieving total revenue of 142.736 billion yuan. However, the net profit attributable to shareholders decreased by 12.0% year-on-year to 2.636 billion yuan, indicating continued pressure on profitability due to declining gross margins [7] - The company has shown good expense control, with stable expense ratios across various categories. The comprehensive gross margin for Q1 2025 was 10.8%, down by 1.0 percentage points year-on-year [7] - New signed contracts decreased by 9.6% year-on-year to 299.3 billion yuan in Q1 2025, with notable performance in hydropower and wind power sectors, which saw increases of 20.2% and 67.3% respectively [7] - The company is expected to benefit from increased domestic investment in major water conservancy and hydropower infrastructure, as well as the ongoing expansion of its renewable energy investment and operation business [7] Summary by Sections Financial Performance - Total revenue for 2023 is projected at 609.844 billion yuan, with a year-on-year growth of 6.50%. The net profit attributable to shareholders is expected to be 12.949 billion yuan, reflecting a growth of 13.24% [1] - The earnings per share (EPS) for 2023 is estimated at 0.75 yuan, with a price-to-earnings (P/E) ratio of 6.28 [1] Revenue and Profit Forecast - Revenue is forecasted to grow to 634.552 billion yuan in 2024, 648.864 billion yuan in 2025, and 675.132 billion yuan in 2026, with corresponding net profits of 12.015 billion yuan, 12.490 billion yuan, and 13.220 billion yuan respectively [1][8] - The projected EPS for 2025 is 0.73 yuan, with a P/E ratio of 6.51 [1] Market Data - The closing price of the stock is 4.74 yuan, with a market capitalization of approximately 81.652 billion yuan [5] - The company has a price-to-book (P/B) ratio of 0.58 and a debt-to-asset ratio of 79.61% [6]