CYPC(SH:600900) Tianfeng Securities·2024-05-08 05:30Investment Rating - The report maintains a "Buy" rating for the company with a target price indicating a potential return of over 20% within six months [4][12]. Core Views - The company reported a revenue of 78.11 billion RMB in 2023, a year-on-year increase of 13.4%, and a net profit attributable to shareholders of 27.24 billion RMB, up 14.8% year-on-year [1][2]. - The company plans to distribute a cash dividend of 0.82 RMB per share for 2023, maintaining a stable dividend payout ratio of 73.66% [1][2]. - The acquisition of the Wudongde and Baihetan hydropower stations has increased the company's total hydropower installed capacity to 71.795 million kW, accounting for 17.01% of the national hydropower capacity [2]. Financial Performance - In Q1 2024, the company achieved a revenue of 15.64 billion RMB, a year-on-year growth of 1.58%, and a net profit of 3.97 billion RMB, up 9.8% year-on-year despite a decrease in power generation [1][2]. - The company’s financial expenses decreased to 2.85 billion RMB in Q1 2024, down 2.96 billion RMB year-on-year, contributing to the profit growth [2]. - The investment income from associated thermal power companies increased, leading to a net investment income of 900 million RMB in Q1 2024, up 3.22 billion RMB year-on-year [2]. Revenue and Profit Forecast - The company is expected to achieve net profits of 32.81 billion RMB, 35.80 billion RMB, and 37.85 billion RMB for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 18.9, 17.3, and 16.4 [2][3].