DEC(600875) 华源证券·2024-05-10 06:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its future performance [2][6]. Core Views - The company is positioned as a core supplier of high-end energy equipment, benefiting from the energy transition and the increasing demand for reliable power supply [2][3]. - The company has diversified its operations across various energy sectors, including hydropower, thermal power, nuclear power, wind power, solar energy, and hydrogen energy, establishing a robust foundation for future growth [3][14]. - The report highlights the importance of traditional power sources in ensuring energy security, especially as the share of renewable energy increases, leading to new challenges in peak load supply [22][23]. Summary by Sections Company Overview - The company is a key player in the global energy equipment sector, supplying over one-third of China's power generation equipment and has a strong competitive position in the market [3][14]. - It has a history of over 60 years in the energy sector, evolving from hydropower to a diversified portfolio that includes various energy sources [14][15]. Market Dynamics - The increasing share of renewable energy sources, such as wind and solar, has created challenges in maintaining peak load supply, necessitating a greater reliance on traditional power sources [22][23]. - The report emphasizes that the transition to a new energy system will require a balance between capacity support and energy supply, with traditional sources playing a crucial role [25][26]. Financial Performance - The company reported revenues of 55.364 billion yuan in 2022 and 60.677 billion yuan in 2023, with year-on-year growth rates of 15.78% and 9.6%, respectively [3][15]. - The net profit for the same years was 2.858 billion yuan and 3.550 billion yuan, reflecting growth rates of 24.85% and 24.23% [3][15]. Profit Forecast and Valuation - The company is expected to achieve net profits of 4.17 billion yuan, 4.99 billion yuan, and 5.69 billion yuan from 2024 to 2026, with growth rates of 17.6%, 19.5%, and 14.1% respectively [4][6]. - The current price-to-earnings (PE) ratios are projected to be 13, 11, and 9 for the years 2024, 2025, and 2026, indicating a favorable valuation compared to historical performance [4][6].