ZZEPC(600023) 国信证券·2024-10-31 10:03Investment Rating - The investment rating for the company is "Outperform the Market" [4][6][18]. Core Views - The company's revenue has decreased due to a decline in revenue from Zhonglai Co., but the net profit attributable to the parent company has increased, primarily due to a decrease in coal costs [1][7]. - The company has seen significant growth in power generation, particularly in thermal and photovoltaic energy, driven by increased electricity demand in Zhejiang province [2][9]. - The company is expanding its coal power capacity and gradually implementing nuclear power projects, which are expected to enhance profitability in the future [3][17]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 66.296 billion yuan, a decrease of 4.62%, while the net profit attributable to the parent company was 6.7 billion yuan, an increase of 12.37% [1][7]. - In Q3 2024, the company reported a revenue of 26.131 billion yuan, down 5.93%, and a net profit of 2.773 billion yuan, down 12.90% [1][7]. - The company's power generation for the first three quarters of 2024 was 129.188 billion kWh, an increase of 6.96%, with thermal power generation accounting for 128.899 billion kWh, up 6.88% [8][9]. Future Outlook - The company is expected to maintain its profit forecast, with net profits projected to be 7.57 billion yuan, 8.06 billion yuan, and 8.56 billion yuan for 2024, 2025, and 2026, respectively [4][18]. - The estimated earnings per share (EPS) for the same period are projected to be 0.56 yuan, 0.60 yuan, and 0.64 yuan [4][18]. - The company's reasonable market value is estimated to be between 83.3 billion yuan and 90.8 billion yuan, with a corresponding share price of 6.21 to 6.77 yuan, indicating a premium of 6% to 15% over the current stock price [4][18].