SCTE(SH:600674) Zhongyuan Securities·2025-08-20 10:49Investment Rating - The investment rating for the company is "Buy" (maintained) [1][31]. Core Views - The company reported a stable growth in investment income, with a significant dividend support from Yalong River Hydropower [1][7]. - In the first half of 2025, the company achieved an operating revenue of 712 million yuan, a year-on-year increase of 17.95%, and a net profit attributable to shareholders of 2.461 billion yuan, up 6.90% year-on-year [7][8]. - The company received dividends from Yalong River Hydropower amounting to 3.216 billion yuan, a substantial increase compared to the same period in 2024 [8]. Summary by Sections Financial Performance - In H1 2025, the company’s investment income grew by 5.75% year-on-year, totaling 2.551 billion yuan, with equity investment income from associates increasing by 7% [8]. - The company’s power generation volume reached 2.361 billion kWh, a year-on-year increase of 17.76%, with hydropower generation contributing 2.228 billion kWh, up 17.82% [8][9]. - The average on-grid electricity price increased by 8.17% year-on-year to 0.278 yuan/kWh, with hydropower prices rising by 11.62% [9]. Operational Highlights - The total installed capacity of the company reached 37.41 million kW by the end of H1 2025, with equity capacity at 17.65 million kW [9]. - The company holds a 48% stake in Yalong River Hydropower, which has a total installed capacity of 20.83 million kW, including 19.2 million kW of hydropower [9]. Dividend and Shareholder Actions - The company has maintained a stable dividend of 0.4 yuan per share from 2021 to 2024, with the 2024 annual equity distribution completed in July 2025 [12]. - The controlling shareholder, Sichuan Energy Development Group, increased its stake in the company to 50.19% between April 9 and July 17, 2025 [12]. Profit Forecast and Valuation - The projected net profits for the company from 2025 to 2027 are 5.201 billion yuan, 5.503 billion yuan, and 5.780 billion yuan, respectively, with corresponding earnings per share of 1.07 yuan, 1.13 yuan, and 1.19 yuan [13][14]. - The price-to-earnings ratios for the same period are estimated at 14.40X, 13.60X, and 12.95X, indicating a favorable valuation outlook [13].