ZZEPC(600023) 民生证券·2024-10-30 14:39Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [3] Core Views - The company has shown stable growth in performance, with a focus on thermal power generation while maintaining nuclear power investments. The revenue for the first three quarters of 2024 was 66.3 billion, a year-on-year decrease of 4.62%, while the net profit attributable to shareholders increased by 12.37% to 6.7 billion [1][2] - The electricity demand in Zhejiang province has seen significant growth, with total electricity consumption reaching 511.5 billion kWh, a year-on-year increase of 10.55%. The company's power generation for the first three quarters was 129.19 billion kWh, up 6.96% year-on-year [1] - The company’s thermal power generation has been stable, with a notable increase in coal-fired power generation due to the full operation of the Le Electric Phase III project in June 2023 [1] - The company is actively pursuing distributed photovoltaic projects while managing costs effectively, leading to improved profitability despite a decline in revenue from its photovoltaic subsidiary [1] - The investment income from joint ventures has contributed significantly to profits, with total investment income for the first three quarters amounting to 3.404 billion [1] Financial Summary - For 2024, the company forecasts net profits of 7.588 billion, 7.988 billion, and 8.218 billion for 2024, 2025, and 2026 respectively, with corresponding PE ratios near 10 times based on the closing price on October 29 [2][4] - The company’s total revenue is projected to be 93.902 billion in 2024, with a slight decrease of 2.2% compared to 2023, followed by a recovery in 2025 and 2026 [2][4] - The report highlights a decrease in operating costs, which has positively impacted profitability, with the expense ratio for Q3 2024 at 3.98%, a slight decrease from the previous year [1]