GDPD(SH:600795) Guotai Junan Securities·2024-04-28 02:32Investment Rating - The investment rating for Guodian Power (600795) is maintained at "Buy" with a target price of 6.50 CNY, unchanged from the previous rating [1][2]. Core Views - The company's performance is driven by investment income and steady growth in electricity generation. The first quarter of 2024 saw a significant increase in net profit, exceeding previous expectations [1][2]. - The company is expected to benefit from accelerated capital expenditures and continuous growth in new energy installations, with plans to acquire over 14.0 GW of new energy resources by 2024 [1][2]. Summary by Sections Financial Performance - In Q1 2024, the company reported operating revenue of 45.6 billion CNY, a year-on-year increase of 0.5%. The net profit attributable to shareholders was 1.78 billion CNY, up 85.0% year-on-year, marking a turnaround from the previous quarter [1][2]. - The company's electricity generation in Q1 2024 was 100.7 billion kWh, a year-on-year increase of 5.0% [1][2]. Investment Highlights - The company’s investment income from joint ventures increased by 5.5% year-on-year, contributing positively to the overall performance [1][2]. - The company’s capital expenditures reached 11 billion CNY in Q1 2024, a year-on-year increase of 55.4%, supporting future growth in new energy installations [1][2]. Financial Projections - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.50 CNY, 0.56 CNY, and 0.63 CNY respectively [1][2]. - The company’s total revenue is expected to grow from 180.999 billion CNY in 2023 to 191.012 billion CNY in 2024, reflecting a recovery in the market [2]. Valuation Metrics - The company’s price-to-earnings (P/E) ratio is projected to decrease from 15.84 in 2023 to 9.86 in 2024, indicating an attractive valuation [2]. - The return on equity (ROE) is expected to improve from 11.5% in 2023 to 16.1% in 2024, reflecting enhanced profitability [2].