Increase holdings and buyback at the same time, the distribution of electricity bibcock shows confidence in development. The company announced that Changjiang Electric Power, the company's controlling shareholder, intends to increase its shareholding by 0.5 billion yuan, while the company plans to buy back 100 million yuan to 200 million yuan, with a repurchase price of no more than 10 yuan per share. The repurchased shares are intended to be used for future employee stock ownership plans or equity incentives. The company is an integrated electricity sales company for distribution and distribution, and the positioning company is the only listed platform for the distribution of electricity of the three Gorges Group. according to the mid-23 year report, the company's market share in Chongqing is about 10%. 23H1 due to the dry water supply and narrowing of the rationing electricity price difference, the company's performance is-89% year-on-year, and the performance is low.

The development of the integration of power generation and distribution, and the continuous expansion of electricity sales area. Generation side: the company's own hydropower installed 746200 kilowatts, 2023H1 generation capacity of 856 million kilowatt hours (year-on-year-43.8%), but thanks to the increase in customer electricity consumption, 23H1 sold 6.725 billion kilowatt-hours (+ 5.1% compared with the same period last year). Power distribution side: the state continues to promote incremental distribution reform, and in September issued the "measures for the implementation of Distribution area Division of incremental Distribution Business (draft for soliciting opinions)", which clearly defines the unique operation right of the distribution network in the region, and the company integrates the four regional power grids in Chongqing. The network has the bargaining power; the power sales side: layout the national electricity sales market, has obtained the qualification access of electricity sales in 8 provinces and cities. At the end of the 14th five-year Plan, the company plans to sell electricity / market-oriented electricity up to 20,080 billion kilowatt-hours respectively, and 23H1 has signed a contract of 24 billion kilowatt-hours.

Multi-point blossom, integrated energy services business steadily progress. (1) Wanzhou cogeneration project was put into operation, Chongqing Liangjiang Dragon Xing Ganfeng Energy Station project obtained the preliminary approval formalities, and Angang Group jointly established a clean energy company; (2) 28 user side energy storage projects with a total capacity of 50MWh have been completed, and two independent energy storage projects have been connected to the grid at the beginning of August with a total installed scale of 300MW and 600MW; (3) 27 electric heavy truck decision-making projects have been completed. (4) the 7.1MW roof photovoltaic project was put into production in the first half of the year, and the 36MW agricultural photovoltaic complementary photovoltaic project launched the EPC project recruitment.

Profit forecast and investment advice. It is estimated that the 23-year 25-year net profit of the company will be 6.6 pounds 9.3 / 1.12 billion yuan, and the PE corresponding to the latest closing price is 22-15-13 times. Improved water supply is expected to improve spontaneous electricity, and integrated energy services will continue to be promoted. Give the company a 24-year valuation of 25 times PE, corresponding to a reasonable value of 12.20 yuan per share, and maintain a "buy" rating.

Risk hint. The fluctuation of incoming water; the narrowing of the price difference between purchase and sale of electricity; the progress of comprehensive energy services is not as expected.