Glonghui May 16 丨 Guoxin Securities's May 15 research report pointed out that as the installed capacity of hydropower and electricity sales increased, the operating income of the Three Gorges Water Conservancy (600116.SH) continued to grow, but Guimu's net profit fluctuated due to changes in manganese ore prices, hydropower generation capacity, and fair value earnings. In 2022, the company achieved operating income of 11.093 billion yuan (+9.00%) and net profit of 476 million yuan (-44.95%) to the mother. The market-based reform of electricity is advancing, and the integrated energy industry has ushered in development opportunities. Furthermore, the phenomenon of negative electricity prices favors the development of the “electricity distribution and energy storage” industry. According to the company's plan, by 2025, the company will sell more than 100 billion kilowatt-hours of electricity, including 80 billion kilowatt-hours of market-based electricity sales. At the same time, the company is vigorously developing distributed photovoltaics, energy storage, electric heavy trucks, and battery asset management businesses to achieve collaborative business development. Profit forecasts were lowered due to the poor supply situation of the company in the first quarter and the slowdown in the development of the electricity sales business. The bank expects the company's net profit to be 856, 1209, and 1,448 million yuan respectively in 2023-2025 (the original forecast values were 1,153, 1,488 million yuan, and 1,882 billion yuan), and EPS of 0.45, 0.63, and 0.76 yuan respectively. Through multi-faceted valuation, it is estimated that the company's reasonable valuation is 11.20-12.09 yuan, with a 22%-31% premium over the current stock price, maintaining the “buy” rating.