Core Insights - The core viewpoint of the article is that the pricing structure for pumped storage power plants is expected to change, with a shift from a high reliance on capacity fees to a more balanced approach that includes energy fees, driven by new regulatory guidelines [1] Pricing Structure - According to document 633, the pricing for pumped storage includes both capacity fees and energy fees [1] - Currently, capacity fees account for over 90% of the revenue structure for pumped storage plants [1] - The new regulations suggest a gradual reduction in the proportion of government-approved capacity fees relative to the designed capacity of the plants, encouraging them to utilize remaining capacity in the electricity market [1] Future Revenue Expectations - The company anticipates that for newly constructed pumped storage plants, the revenue structure will evolve, with a greater emphasis on market competitiveness affecting earnings [1] - The specific pricing policies will be subject to formal documents from relevant national authorities [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 6.174 billion yuan in 2024, representing a year-on-year growth of 9.67%, and a net profit attributable to shareholders of 1.126 billion yuan, up 11.14% year-on-year [7] - The report highlights the stability of the pumped storage business and significant improvements in peak-shaving hydropower, with the latter's revenue increasing by 55.5% year-on-year [7] - The company is entering a production phase for pumped storage projects, with a total installed capacity of 10.28 million kilowatts expected by the end of 2024 [7] - The new energy storage segment saw a remarkable revenue increase of 198.9% year-on-year, driven by the commissioning of the Foshan Baotang storage station [7] Financial Performance Summary - In 2024, the company reported total revenue of 61.74 billion yuan, with a net profit of 11.26 billion yuan, and a weighted average ROE of 5.31% [7] - The revenue from pumped storage was 4.147 billion yuan, down 6.4% year-on-year, while peak-shaving hydropower revenue reached 1.634 billion yuan, up 55.5% year-on-year [7] - The company’s cash flow from operating activities was 3.855 billion yuan, an increase of 8.39% year-on-year, with a cash dividend of 338 million yuan, representing a 30% payout ratio [7] - The projected net profit for 2025 is 1.235 billion yuan, with a corresponding P/E ratio of 25.21 [1][8]