Q1雅砻江电价增长对冲电量压力，看好全年水电业绩稳定提升

Investment Rating - The investment rating for the company is "Buy" with a 6-month outlook [3] Core Views - The report highlights that the increase in electricity prices from the Yalong River hydropower company offsets the pressure from declining electricity generation, leading to a stable improvement in hydropower performance for the year [1][2] - The main driver of profit growth in 2023 was the increase in investment income from major equity holdings, particularly from Yalong River Hydropower Company, which saw a profit increase of 6.02 billion yuan [2] - The report anticipates continued profit contributions from the construction of new hydropower stations in the future, enhancing the company's performance [2][6] Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 1.48 billion yuan, a year-on-year increase of 4.36%, and a net profit attributable to shareholders of 4.4 billion yuan, up 25.17% [1][7] - For Q1 2024, the company reported total revenue of 258 million yuan, a 2.92% increase year-on-year, and a net profit of 1.27 billion yuan, reflecting a 12.06% growth [1] Investment Income - The net investment income for 2023 was 48.13 billion yuan, a 22.9% increase from 2022, driven by contributions from Yalong River, Dadu River, and China Nuclear Huineng [2] - Yalong River Hydropower Company generated a net profit of 8.66 billion yuan in 2023, a 17.6% increase, despite a 4.8% decrease in electricity generation [2] Future Outlook - The report indicates that the Yalong River hydropower company is expected to maintain profitability in Q1 2024, despite an 8.2% decline in electricity generation due to increased electricity prices [2] - The company has a robust pipeline of hydropower projects under construction, which is expected to contribute to future profit growth [2][6]