Huatai Securities: Yalong River Inflow Recovery Drives Q3 Profit Growth
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Chuantou Energy (600674 CH) posted Q3 2026 revenue of RMB444 million, up 3.71% year on year, while net profit attributable to shareholders rose 17.91% to RMB2.076 billion. The earnings acceleration was driven chiefly by a recovery in water inflows across the Yalong River basin, which lifted investment income from associates and joint ventures by 20.42% to RMB2.034 billion. Although generation at controlled hydropower plants increased, on-grid tariffs slipped under spot price pressure, keeping revenue growth modest; solar output also fell on typhoon disruption.
The company has committed to a cash dividend payout ratio of at least 50% for 2026-2028, reinforcing its high-yield profile. Huatai Securities expects healthy Yalong River reservoir levels to support continued year-on-year generation growth in Q4, though it trimmed its 2026-2028 net profit forecasts. It maintains a Buy rating with a target price of RMB20.78.
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