主业业绩修复，看好参股水电持续增利

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its performance and potential growth [5]. Core Views - The company is expected to benefit from the continued growth in its investment income, particularly from its stakes in hydropower projects, which are anticipated to enhance profitability [3][5]. - The company's main business is in a recovery phase, with significant improvements in operational performance and investment returns [3][5]. Financial Summary - As of the end of H1 2023, the company has 3.42 million kilowatts of hydropower capacity under construction and approval, with additional growth potential from renewable energy projects [1]. - For 2023, the company reported revenue of 1.482 billion yuan, a year-on-year increase of 4.4%, and a net profit of 4.4 billion yuan, reflecting a 25.2% increase [3]. - The forecast for 2024-2026 projects net profits of 4.941 billion yuan, 5.372 billion yuan, and 5.599 billion yuan, respectively, with growth rates of 12.3%, 8.7%, and 4.2% [3][6]. - The company's gross margin is expected to improve from 46.4% in 2023 to 50.2% by 2026 [3][6]. - The price-to-earnings (PE) ratio is projected to decrease from 18.7x in 2023 to 14.7x in 2026, indicating a potentially attractive valuation [3][6]. Investment Opportunities - The company is expanding its renewable energy business, including a planned investment in a pumped storage power station, which is expected to open new growth avenues [1][3]. - The company has committed to a minimum cash dividend of 0.4 yuan per share for the years 2023-2025, translating to a current dividend yield of 2.37% based on the closing price as of April 11, 2024 [3][5].