Huatai Securities: Sichuan Investment Energy (600674) — Yalong River Inflow Recovery Drives Q3 Profit Growth
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Huatai Securities writes that Sichuan Investment Energy (600674 CH) reported Q3 2026 net profit attributable to shareholders of RMB 2.076 billion, up 17.91% year on year and 136.66% quarter on quarter, driven mainly by a year-on-year recovery in water inflows across the Yalong River basin. For January–September 2026, generation at controlled hydropower plants rose 6.46% year on year, but on-grid hydropower tariffs fell 3.72% on spot price pressure, and solar output declined year on year due to typhoons. Restored Yalong River inflows lifted investment income from associates and joint ventures—the core profit driver.
The company has committed to a cash dividend payout ratio of no less than 50% for 2026–2028, strengthening its high-dividend appeal alongside the stable cash flows of hydropower assets and long-term allocation value.
Huatai expects Q4 2026 Yalong River generation to continue growing year on year, but has lowered its 2026–2028 net profit forecasts. It maintains a Buy rating with an adjusted target price of RMB 20.78.
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