YEIC(002053) Guotai Junan Securities·2024-11-08 12:53Investment Rating - The report maintains an "Accumulate" rating for Yunnan Energy Investment [2][8] - The target price is set at 16.32, unchanged from the previous forecast [2] Core Insights - The company focuses on its core electricity business while divesting its loss-making natural gas operations, which is expected to initiate a broader asset integration within the group [3] - The natural gas segment reported revenue of 850 million yuan in the first three quarters of 2024, a year-on-year increase of 67.5%, but negatively impacted the net profit attributable to the parent company by 43 million yuan [8] - The shale gas exploration and development company will become an associate company post-capital increase, improving the quality of consolidated assets [8] Financial Summary - Revenue is projected to grow from 2,904 million yuan in 2023 to 5,001 million yuan in 2026, reflecting a compound annual growth rate (CAGR) of 15.9% [9] - Net profit attributable to the parent company is expected to increase from 482 million yuan in 2023 to 1,361 million yuan in 2026, with a CAGR of 24.0% [9] - Earnings per share (EPS) are forecasted to rise from 0.52 yuan in 2023 to 1.48 yuan in 2026 [9] Market Data - The stock price has ranged between 8.49 and 13.27 yuan over the past 52 weeks, with a current price of 12.98 yuan [4] - The total market capitalization is approximately 11,951 million yuan [4] Investment Highlights - The report emphasizes the strategic focus on renewable energy, with significant potential for asset injection from the parent company, Yunnan Energy Investment Group [8] - The company has signed a framework agreement with its controlling shareholder to prioritize the acquisition of renewable energy projects that meet listing conditions [8]