长江电力20241101

Summary of Conference Call Notes Company and Industry Overview - The company has maintained a high cash dividend policy since its listing, accumulating cash dividends of 183.94 billion yuan, with a cash dividend of 0.82 USD per share in 2023, exceeding 20 billion yuan in total cash dividends for the year [1] - The company operates in the energy sector, specifically focusing on hydropower generation and renewable energy projects Key Points and Arguments Financial Performance - The company reported a total power generation of approximately 2,358.14 billion kilowatt-hours in the first three quarters, an increase of 15.97% year-on-year [1] - The total power generation for the six hydropower stations in the third quarter of 2024 was 1,151.96 billion kilowatt-hours, showing an increase of over 15% compared to the same period in the previous year [1] - Investment returns for the first three quarters were 436 million yuan, an increase of 600 million yuan year-on-year, with total investments reaching 5.21 billion yuan [3] Operational Highlights - The company has successfully managed water resources, with the total inflow to the Wudongde Reservoir at approximately 88.852 billion cubic meters, a year-on-year increase of 12.56%, and the Three Gorges Reservoir inflow at approximately 313.11 billion cubic meters, a year-on-year increase of 20.26% [1] - The company has established several new projects, including the construction of the Zhejiang Tiantai Power Plant and the advancement of various pumped storage projects [2] - The company has maintained a 3A credit rating domestically and an A1 rating internationally, with a total of 9 billion yuan in bonds issued at a comprehensive cost of 2.28% [3] Research and Development - R&D investment for the first nine months was 584 million yuan, remaining stable compared to the previous year, with a total of 2,365 domestic patent applications filed [2] - The company anticipates a total R&D expenditure of approximately 2.35 billion yuan for the year 2024 [14] Future Outlook - The company plans to continue its high cash dividend policy, with a commitment to maintain a profit distribution ratio of no less than 70% from 2021 to 2025, and a projected cash dividend ratio of approximately 75% for 2023 [20][21] - The company is actively pursuing overseas business opportunities, including the acquisition of a 140,000-kilowatt wind power project in Peru and the expansion of its electric vehicle fleet [8][9] Challenges and Risks - The company faces challenges in meeting water storage targets, particularly for the Three Gorges Reservoir, which has a target of 175 meters but is expected to fall short [6][25] - The company is also navigating the complexities of market pricing for electricity, with expectations for stable pricing in the upcoming year despite fluctuations in supply and demand [10][11] Additional Important Information - The company has received recognition from local government bodies for its contributions to energy supply and management [1] - The company is focused on optimizing its capital structure and reducing financial costs, with a goal to lower its debt ratio [5] - The company is committed to enhancing its operational efficiency and safety management practices across its projects [3][4]