Robust 3Q23 power generation; controlling shareholder’s share increase plan demonstrates confidence

（以下内容从招银国际《Robust 3Q23 power generation; controlling shareholder’s share increase plan demonstrates confidence》研报附件原文摘录）
三峡能源(600905)
CTGR reported a 10.31% YoY increase in 3Q23 electricity generation, withwind and solar power showing robust growth. Cumulatively, from 1Q23 to3Q23, the company’s electricity generation grew by 13.36% YoY to 40.03bnkWh. We remain optimistic about CTGR’s full-year power generation.
Additionally, CTG, the controlling shareholder of CTGR, plans to increase itsstake in next 12 months, demonstrating confidence in CTGR's future businessextension. For 2023, CTGR aims to achieve no less than renewable energycapacity installed, and we believe CTGR can achieve its target supported byabundant project resources and lower upstream cost. We maintain our BUYrating and target price of HK$6.24.
CTGR announced resilient 3Q electricity generation growth and wemaintain our full-year generation estimates unchanged. CTGR's 3Qelectricity generation reached 11.94bn kWh, a 10.31% YoY increase. Windpower generation rose by 10.04%YoY (onshore/offshore wind power by9.47%/11.41% YoY) to 7.40bn kWh, while solar power increased by11.82% YoY to 4.16bn kWh. Hydropower declined by 1.63% YoY, butindependent energy storage rose by 46.67% YoY. Cumulatively, in 1Q-3Q23, electricity generation grew by 13.36% YoY to 40.03bn kWh, withwind/solar/hydro/energy storage generation up by16.27%/8.92%/21.15%/56.67% YoY. Given the robust electricitygeneration growth in 3Q and Jan-Sep 2023, our full-year generationestimate of 55.82bn kWh remains unchanged.
CTGR announced its controlling shareholder China Three GorgesGroup’s (CTG) shareholding increase plan, showing strongconfidence in CTGR's business expansion. CTG plans to increase itsstake in CTGR over the next 12 months, with an amount no less thanRMB300mn and not exceeding RMB500mn at a price of no higher thanRMB6/share. This move demonstrates that CTG has strong confidence inCTGR’s future renewable energy business development.
CTGR aims for a significant extension of new energy capacityinstalled for FY23E with abundant project resources. CTGR targets toadd no less than 5GW of on-grid installed capacity for renewable energy.As at end-1H23, the company added 1.8GW, and had 13.2GW of capacityunder construction. We believe CTGR will speed up its capacity installationprocess in 2H23E. Moreover, CTGR acquired new project resources withclear locations of 24.8GW, and acquired new approval and registered newenergy projects of 14.2GW in Jan-Aug 2023. We believe CTGR’sabundant project resources and lower upstream cost will further supportits long-term business expansion.
We keep our TP unchanged at HK$6.24, and maintained BUY. Thanksto robust power generation in 1Q-3Q23, we maintain our key assumptionslargely unchanged and stay optimistic about CTGR’s future installedcapacity. Thus, we keep our TP unchanged at HK$6.24, and maintain BUYrating.