Hua Yuan Zheng Quan·2024-06-25 09:30Investment Rating - The report maintains a "Buy" rating for China General Nuclear Power Corporation (003816.SZ) [4] Core Views - The company plans to issue A-share convertible bonds to raise up to 4.9 billion yuan for the construction of the Guangdong Lufeng Nuclear Power Plant units 5 and 6, which are expected to commence operations in 2027 and 2028, respectively [4] - The issuance of convertible bonds is expected to optimize the financial structure, with an estimated dilution of EPS by about 2% at the current price [4] - Nuclear power units are the core profit-generating assets for the company, supporting steady growth in electricity sales [4] - The company achieved operating revenue of 19.181 billion yuan in Q1 2024, a year-on-year increase of 4.88%, and a net profit attributable to shareholders of 3.604 billion yuan, up 3.38% year-on-year [4] - The company has six nuclear power units under construction and four awaiting approval, indicating stable growth in nuclear power capacity from 2024 to 2030 [4] - The company is actively planning asset acquisition for nuclear power projects in Huizhou and Cangnan, with a commitment to inject these assets into the listed company within five years of project commencement [4] - Profit forecasts for 2024-2026 are maintained at 11.87 billion, 12.4 billion, and 13.07 billion yuan, with year-on-year growth rates of 10.7%, 4.4%, and 5.4% respectively [4] Summary by Sections Financial Performance - The company’s total revenue for 2023 was 82.549 billion yuan, with a year-on-year growth rate of -0.33% [5] - The net profit attributable to shareholders for 2023 was 10.725 billion yuan, reflecting a year-on-year growth of 7.62% [5] - The company’s total assets as of March 31, 2024, were 419.2 billion yuan, with a net asset value of 168.4 billion yuan [5] Future Outlook - The company expects to maintain a steady growth trajectory in nuclear power generation, with plans to commission new units annually from 2025 to 2030 [4] - The anticipated dividend payout ratio for 2024-2026 is 45%, leading to dividend yields of 2.6%, 2.7%, and 2.9% respectively [4]