SCTE(SH:600674) Guotai Junan Securities·2024-04-11 16:00Investment Rating - The report maintains an "Accumulate" rating for ChuanTou Energy (600674) with a target price of 20.88 yuan, up from the previous target of 18.08 yuan [1][2]. Core Insights - The company's Q1 2024 performance exceeded expectations, with net profit attributable to shareholders reaching 1.27 billion yuan, a year-on-year increase of 12.1% [1]. - The growth in performance is attributed to increased investment income and cost savings, with investment income for Q1 2024 at 1.32 billion yuan, up 7.0% year-on-year [1]. - The report highlights the potential for continued growth in equity installed capacity due to the company's investments in hydropower and rising electricity prices [1]. Summary by Sections Financial Performance - For 2023, the company reported a net profit of 4.4 billion yuan, a year-on-year increase of 25.2% [1]. - The projected net profits for 2024 and 2025 are 5.68 billion yuan and 5.91 billion yuan, respectively, with corresponding EPS estimates of 1.16 and 1.21 yuan [1]. - The company's revenue for 2023 is forecasted at 1.48 billion yuan, with a growth rate of 4% compared to 2022 [2]. Installed Capacity and Growth Potential - As of the end of 2023, the company has over 20.8 GW of installed hydropower and wind capacity, with plans for further expansion [1]. - The report notes that the company has been selected for new energy projects, indicating a strong competitive position in the market [1]. Valuation Metrics - The report provides a comparison of valuation metrics, with a PE ratio of 18.7 for 2023E and 14.6 for 2024E, indicating a favorable valuation compared to peers [6]. - The company's dividend per share for 2023 is projected at 0.40 yuan, maintaining a dividend payout ratio of 44.3% [1].