SDIC Power(SH:600886) Changjiang Securities·2025-05-11 11:42Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - The company achieved a revenue growth of 1.95% in 2024, with total revenue reaching 57.819 billion yuan, while the net profit attributable to shareholders decreased by 0.92% to 6.643 billion yuan. In Q1 2025, revenue was 13.122 billion yuan, a decrease of 6.99%, but net profit attributable to shareholders increased by 2.1% to 2.078 billion yuan [6][2]. - The company's operational performance is supported by a significant reduction in costs, with total operating costs decreasing by 0.75% in 2024 and a further decline of 11.79% in Q1 2025, benefiting from lower coal prices and interest rates [2][11]. - The company is focusing on cost reduction strategies to ensure performance growth despite weak revenue due to price declines and volume pressures in the energy market [11][6]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 57.819 billion yuan, with a net profit of 6.643 billion yuan. The first quarter of 2025 saw a revenue of 13.122 billion yuan and a net profit of 2.078 billion yuan [6][2]. - The company’s total installed capacity reached 44.6347 million kilowatts, with clean energy accounting for over 70% of the total capacity [11]. Cost Management - The company actively reduced costs, achieving a decrease in total operating costs by 0.75% in 2024 and 11.79% in Q1 2025. Financial expenses were reduced by 14.17% [2][11]. - The average on-grid electricity price in 2024 was 0.359 yuan/kWh, a decrease of 4.01% year-on-year, influenced by changes in energy mix and pricing mechanisms [11]. Future Outlook - The company is expected to see EPS of 0.92 yuan, 1.04 yuan, and 1.11 yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 16.45, 14.64, and 13.67 [11][6]. - The ongoing development of the Yalong River integrated water-wind-solar base is anticipated to enhance the company’s growth potential, with a total of 30 million kilowatts of hydropower capacity available for development [11].