HPI(600011) 华福证券·2024-08-01 03:01Investment Rating - The report maintains a "Buy" rating for Huaneng International, expecting a relative price increase of over 20% in the next six months [9]. Core Views - In the first half of 2024, Huaneng International reported a revenue of 118.806 billion yuan, a year-on-year decrease of 5.73%, while the net profit attributable to shareholders increased by 18.16% to 7.454 billion yuan [1]. - The decline in revenue was attributed to a 0.22% decrease in electricity generation and a 3.21% drop in average electricity settlement prices, alongside a significant 26.26% decrease in Singapore operations [1]. - The company benefited from a reduction in coal prices, with the average coal price down 11.20%, and a decrease in financial expenses by 419 million yuan, contributing to the increase in net profit [1]. - The profit per kilowatt-hour for coal-fired generation showed a significant year-on-year increase of 92.8% in 2Q24, despite a decrease in electricity generation [1]. Financial Summary - For 2024-2026, the projected net profits are 12.577 billion yuan, 13.851 billion yuan, and 15.607 billion yuan, respectively, with corresponding P/E ratios of 11.8, 10.7, and 9.5 [2][3]. - The company’s revenue is expected to grow from 254.397 billion yuan in 2023 to 272.653 billion yuan in 2026, with a modest growth rate of around 2% annually [3][6]. - The net profit is projected to increase significantly in 2024, with a growth rate of 49% compared to 2023 [3][6]. Operational Performance - In 1H24, the company added 1.0545 million kilowatts of wind power and 1.9897 million kilowatts of solar power capacity, bringing total installed capacities to 16.518 million kilowatts for wind and 15.09 million kilowatts for solar [2]. - The profit per kilowatt-hour for wind and solar energy decreased by 11.0% and 28.7% respectively in 1H24, influenced by various factors including electricity prices and natural conditions [2].