HPI(600011) 长江证券·2024-07-19 04:31Investment Rating - The investment rating for Huaneng International is "Buy" and is maintained [6] Core Views - Seasonal factors limit electricity growth, while cost optimization drives performance. In Q2 2024, the company's coal-fired power generation decreased by 9.65% year-on-year, and the average on-grid electricity price fell by 3.21% year-on-year. However, the decline in thermal power prices is expected to be less than the overall price drop. The average price of coal at Qinhuangdao Port was 848.45 RMB/ton, down 65.96 RMB/ton year-on-year, supporting stable performance in thermal power [4][5] - New energy generation continues to grow, but overseas high base limits performance growth. In Q2 2024, the company added 185,400 kW of wind power and 1,252,900 kW of solar power, with new energy generation increasing by 19.77% year-on-year. However, overseas business performance is expected to decline due to last year's high base [5] Summary by Sections Electricity Generation - In Q2 2024, the total on-grid electricity generation was 97.643 billion kWh, a decrease of 6.24% year-on-year. The average on-grid settlement price was 498.70 RMB/MWh, down 3.21% year-on-year [4] Cost and Performance - The cost optimization is a key factor for stable performance. The average coal price at Qinhuangdao Port was 848.45 RMB/ton, which is expected to support thermal power performance despite the decline in generation and prices [4][5] New Energy Growth - New energy generation reached 13.828 billion kWh in Q2 2024, with wind power growing by 1.8% and solar power by 74.57% year-on-year. This growth helps mitigate price pressures from market participation [5] Financial Projections - The EPS for 2024-2026 is projected to be 0.91 RMB, 1.03 RMB, and 1.12 RMB, with corresponding PE ratios of 9.44x, 8.33x, and 7.64x [5]