SDIC Power(600886) 长江证券·2025-04-23 10:35Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company's hydropower generation increased by 17.90% year-on-year in Q1 2025, driven by the release of stored energy from the Yarlung Tsangpo River and favorable water inflow at major hydropower stations [2][10] - The average on-grid electricity price for the company in Q1 2025 was 0.355 CNY/kWh, a decrease of 0.032 CNY/kWh year-on-year, primarily due to a reduction in the proportion of high-priced thermal power generation [2][10] - Thermal power generation decreased by 32.35% year-on-year in Q1 2025, but significant cost optimization is expected to support the performance of the thermal power segment [2][10] Summary by Sections Hydropower Performance - In Q1 2025, the company generated 252.71 billion kWh of hydropower, a 17.90% increase year-on-year, with the Yarlung Tsangpo River contributing significantly [10] - The hydropower segment's performance is expected to remain robust due to high growth in electricity generation [10] Thermal Power Performance - The company’s thermal power generation was 102.87 billion kWh in Q1 2025, down 32.35% year-on-year, influenced by weak demand and competition from clean energy [10] - Despite the decline in generation, the cost of coal has significantly decreased, which is expected to improve the thermal power segment's profitability [10] Financial Projections - The projected EPS for 2024-2026 is 0.86 CNY, 0.94 CNY, and 1.05 CNY respectively, with corresponding PE ratios of 17.03, 15.63, and 13.94 [10]