Operating income increased slightly, and net profit to mother increased significantly. In the first three quarters of 2024, the company achieved operating income of 32.566 billion yuan (+3.41%), net profit due to mother of 2.459 billion yuan (+66.57%), after deducting non-return net profit of 2.356 billion yuan (+60.85%). In the third quarter of 2024, the company achieved operating income of 12.445 billion yuan (+11.13%), net profit to mother of 1.132 billion yuan (+67.57%), after deducting non-attributable net profit of 1.04 billion yuan (+49.53%). The reasons for the increase in the company's operating income and net profit to mother are: first, the marginal benefits of coal and electricity continue to improve, and the efficiency of holding and participating coal power companies has improved; second, the company has accelerated green transformation and development, and the installed scale and efficiency of clean energy power generation at home and abroad have increased.

2024Q3 achieved a year-on-year increase in thermal power generation, and gas, wind power, and photovoltaic power generation increased significantly at the same time.

In the third quarter of 2024, the company generated 15.616 billion kilowatt-hours (+3.95%), gas and electricity generated 3.303 billion kilowatt-hours (+28.48%), wind power generated 2.192 billion kilowatt-hours (+20.52%), and photovoltaics generated 2.008 billion kilowatt-hours (+21.62%).

New installations for coal power and new energy projects are gradually being implemented, and the scale of the company's performance is expected to increase further. The coal power projects currently under construction by the company include the Caojing Comprehensive Energy Center Phase II project, the Shanghai Waigaoqiao Power Plant capacity expansion project to replace the green and efficient coal power project, etc., with a total installed capacity of 6 million kilowatts. The coal-power projects under construction by the company are located in regions with good economy and high electricity consumption load. The profit situation of the project is relatively good. The profit scale of the company's coal and power sector will further increase after future projects are put into operation. In the new energy sector, the company vigorously develops base-level new energy projects in western China, actively promotes the implementation of clean energy projects in East China and opens up the international energy market. The installed scale of new energy continues to increase. In the first three quarters of 2024, the company added 0.4541 million kilowatts of photovoltaic installed capacity. In the future, the company's new energy projects will gradually be implemented, and the performance of the new energy sector is expected to continue to grow.

Risk warning: declining electricity; falling electricity prices; rising coal prices; falling short of expectations; changes in industry policies.

Investment advice: Increase profit forecasts due to increased electricity and lower fuel costs. The company's net profit for 2024-2026 is estimated to be 2.7/2.92/3.08 billion yuan (the original forecast value was 2.41/2.66/2.83 billion yuan), up 69.3%/5.4% year-on-year respectively; EPS is 0.96, 1.04, and 1.09 yuan, respectively, and PE corresponding to the current stock price is 10.0/9.2/8.7X. The company was given 11-12xPE in 2024. The company's reasonable market value is 29.7-32.4 billion yuan, corresponding to a reasonable value of 10.53-11.49 yuan/share. There is room for a 10%-20% premium compared to the current stock price, maintaining a “superior to the market” rating.