On September 18, Guolonghui mentioned in a Sinolink research report that SDIC Power Holdings (600886.SH) plans to issue 0.55 billion A-share stocks to the social security fund at a price of 12.72 yuan per share. The company aims to raise no more than 7 billion yuan, and the net proceeds from the fundraising after deducting relevant expenses will be used entirely for the construction of the Karala and Mengdi Gou hydropower stations in the Yalong River basin. After the fundraising is in place, the company's asset-liability ratio is expected to decrease by about 1.5 percentage points to 62.3%. Based on the assumption of the company's average comprehensive financing cost of 3.0%, the 7 billion funds are expected to save interest expenses of about 0.21 billion yuan annually. In addition, besides focusing on shareholder returns, introducing the social security fund as a strategic investor is expected to further promote the rational increase in dividend payout ratio. The bank maintains its forecast that the company will achieve net income attributable to the mother of 7.71/8.36/9.14 billion yuan in 2024, 2025, and 2026 respectively. Without considering additional issuance, the current stock price corresponds to PE valuations of 15 times, 14 times, and 13 times.