QYDL(SZ:002039) Minsheng Securities·2024-04-26 03:00Investment Rating - The report maintains a "Buy" rating for Qianyuan Power (002039.SZ) with a target price of 19.18 CNY per share, based on a projected PE of 14.0 times for 2024 [13][15]. Core Views - The company reported a revenue of 261 million CNY in Q1 2024, representing an 18.77% year-on-year increase, and a net profit of 12 million CNY, indicating a turnaround from losses [10]. - The hydropower generation is showing a clear improvement trend, with a total generation of 749 million kWh in Q1 2024, a 23.1% increase year-on-year [11]. - The company is expected to exceed its profit target of 770 million CNY for 2024 due to favorable weather conditions and improved hydropower generation [15]. Financial Summary - The total revenue for 2023 is projected at 1,990 million CNY, with a significant growth forecast of 29.7% to 2,582 million CNY in 2024 [16]. - The net profit attributable to shareholders is expected to rise from 265 million CNY in 2023 to 584 million CNY in 2024, reflecting a growth rate of 120.7% [16]. - Earnings per share (EPS) are forecasted to increase from 0.62 CNY in 2023 to 1.37 CNY in 2024 [16]. Operational Efficiency - The company has shown improvements in operational efficiency, with accounts receivable turnover days decreasing from 17.18 days to 15 days [7]. - The EBITDA is projected to grow from 1,428 million CNY in 2023 to 2,105 million CNY by 2026, indicating a positive trend in operational performance [7][19]. Debt and Financial Management - Capital expenditures have decreased significantly, with a 74.4% reduction in fixed asset investments in Q1 2024 compared to the previous year [15]. - Financial expenses have also declined, contributing to the company's internal growth potential [15].