ZZEPC(600023) 国信证券·2024-10-31 07:55Investment Rating - The investment rating for the company is "Outperform the Market" [7][20]. Core Views - The company's operating revenue decreased, but the net profit attributable to the parent company increased. For the first three quarters of 2024, the company achieved operating revenue of 66.296 billion yuan (-4.62%) and a net profit of 6.7 billion yuan (+12.37%) [1][8]. - The decline in revenue is primarily due to a decrease in revenue from a subsidiary, while the increase in net profit is attributed to a reduction in coal costs [1][8]. - The company's power generation volume increased significantly in Q3 2024, with a total generation of 53.718 billion kWh (+17.07%) [2][10]. Summary by Sections Financial Performance - In Q3 2024, the company reported operating revenue of 26.131 billion yuan (-5.93%) and a net profit of 2.773 billion yuan (-12.90%) [1][8]. - For the first three quarters of 2024, the company generated a total power output of 129.188 billion kWh (+6.96%) [9]. Power Generation and Capacity - The company continues to expand its coal-fired power generation capacity, with several projects under construction expected to add 6 units of 1 million kW coal-fired generators from 2024 to 2026 [3][18]. - The company is also involved in nuclear power projects, with a total installed capacity of 492.2 million kW and an equity capacity of 132.2 million kW [3][18]. Profit Forecast and Valuation - The profit forecast for the company remains unchanged, with expected net profits of 7.57 billion yuan, 8.06 billion yuan, and 8.56 billion yuan for 2024, 2025, and 2026, respectively [4][20]. - The current stock price corresponds to a PE ratio of 10.4, 9.8, and 9.2 for the years 2024, 2025, and 2026, respectively, indicating a reasonable market value of 83.3 billion to 90.8 billion yuan, with a potential upside of 6%-15% from the current price [4][20].