SCTE(SH:600674) Tianfeng Securities·2025-11-04 09:13Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6]. Core Views - The company reported a Q3 revenue of 429 million yuan, a year-on-year decrease of 11.3%, and a net profit attributable to shareholders of 1.76 billion yuan, down 16.96% year-on-year. For the first three quarters, the net profit attributable to shareholders was 4.22 billion yuan, a decline of 4.54% year-on-year [1]. - The company's hydropower generation increased by 17.9% year-on-year to 4.86 billion kWh in the first three quarters, driven by the commissioning of new units at the controlled power company [2]. - The average on-grid electricity price for the company's controlled hydropower decreased by 6.5% year-on-year in the first three quarters of 2025, impacting revenue [2]. - The Yalong River hydropower's revenue for the first three quarters was 19.338 billion yuan, a decrease of 3.2% year-on-year, while net profit increased by 0.8% year-on-year to 8.03 billion yuan [3]. - The report projects net profits for 2025-2027 to be 4.89 billion, 5.15 billion, and 5.33 billion yuan respectively, with corresponding P/E ratios of 14.8, 14.1, and 13.6 [5]. Summary by Sections Financial Performance - Q3 revenue was 429 million yuan, down 11.3% year-on-year; net profit was 1.76 billion yuan, down 16.96% year-on-year [1]. - For the first three quarters, net profit attributable to shareholders was 4.22 billion yuan, a decline of 4.54% year-on-year [1]. Hydropower Generation - The company’s controlled hydropower generation reached 4.86 billion kWh in the first three quarters, up 17.9% year-on-year [2]. - The Yalong River hydropower generation in Q3 was approximately 28.31 billion kWh, down about 16% year-on-year due to reduced water inflow [3]. Revenue and Pricing - The average on-grid electricity price for controlled hydropower decreased by 6.5% year-on-year in the first three quarters of 2025 [2]. - Yalong River hydropower's Q3 revenue was 7.172 billion yuan, down 16.7% year-on-year [3]. Future Projections - The report forecasts net profits of 4.89 billion, 5.15 billion, and 5.33 billion yuan for 2025, 2026, and 2027 respectively [5].