SDIC Power(600886) 信达证券·2024-10-31 07:31Investment Rating - The investment rating for Guotou Electric Power (600886.SH) is "Buy," maintaining the previous rating of "Buy" [1]. Core Views - The report highlights that the company's hydropower generation is recovering, with significant growth in electricity generation from the Yalong River and a slight decline in electricity prices. The company achieved a revenue of 44.395 billion yuan in the first three quarters of 2024, a year-on-year increase of 4.34%, and a net profit attributable to shareholders of 6.578 billion yuan, up 8.69% year-on-year [1][2][3]. Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of 17.294 billion yuan, a year-on-year increase of 6.87%, and a net profit of 2.834 billion yuan, up 4.38% year-on-year. The net profit after deducting non-recurring gains and losses was 2.634 billion yuan, a decrease of 2.65% year-on-year. The company generated a non-recurring gain of 200 million yuan mainly from the disposal of non-current assets [1][2]. Hydropower Generation - The Yalong River and the Small Three Gorges hydropower areas experienced abundant water inflow in Q3, leading to a significant increase in electricity generation. The total hydropower generation for the first three quarters of 2024 was 79.89 billion kWh, a year-on-year increase of 15.55%. The average on-grid electricity price for hydropower decreased slightly to 0.292 yuan/kWh, down 2.19% year-on-year [1][3]. Thermal Power Generation - The company achieved thermal power generation of 41.562 billion kWh in the first three quarters of 2024, a slight decrease of 0.64% year-on-year. The average on-grid electricity price for thermal power was 0.463 yuan/kWh, down 2.11% year-on-year [1][3]. New Energy Development - The company added 995,700 kW of new energy capacity in the first three quarters of 2024, with total new energy generation reaching 8.458 billion kWh, a year-on-year increase of 25.3%. Wind power generation was 4.89 billion kWh, up 1.43%, while photovoltaic generation surged by 84.94% to 3.568 billion kWh. The average on-grid electricity price for wind power and photovoltaic power decreased to 0.469 yuan/kWh and 0.516 yuan/kWh, respectively [1][2][3]. Future Outlook - The report anticipates continued improvement in water inflow for hydropower in 2024, leading to high growth in hydropower generation. Thermal power is expected to benefit from increased electricity demand and cost reductions. The Yalong River hydropower assets are highlighted for their stability and growth potential, with significant room for capacity expansion in the long term [2][3][4].