EBSCN·2024-08-05 04:01Investment Rating - The report maintains a "Buy" rating for Huaneng International [4] Core Views - The company reported a revenue of 118.81 billion yuan for the first half of 2024, a year-on-year decrease of 5.73%, while the net profit attributable to shareholders increased by 18.16% to 7.45 billion yuan [2] - In Q2 2024, the company achieved a revenue of 53.4 billion yuan, down 12.05% year-on-year, and a net profit of 2.86 billion yuan, down 29.58% year-on-year [2] - The profitability of the thermal and wind power segments declined sequentially in Q2 due to cost pressures and reduced utilization hours [2] Summary by Relevant Sections Financial Performance - The total electricity generation for H1 2024 was 1,704 million kWh for coal, 123.34 million kWh for gas, 188.80 million kWh for wind, 81.98 million kWh for solar, 5 million kWh for hydro, and 3.66 million kWh for biomass, with year-on-year changes of -3.19%, -4.14%, +12.53%, +74.24%, +52.67%, and -19.44% respectively [2] - In Q2 2024, the electricity generation was 781.33 million kWh for coal, 51.80 million kWh for gas, 88.51 million kWh for wind, 49.77 million kWh for solar, 3.17 million kWh for hydro, and 1.85 million kWh for biomass, with year-on-year changes of -9.65%, -7.28%, +1.8%, +74.57%, +20.23%, and -29.29% respectively [2] - The total profit for H1 2024 was 3.98 billion yuan for coal, 570 million yuan for gas, 4.03 billion yuan for wind, 1.25 billion yuan for solar, 52 million yuan for hydro, and a loss of 440 million yuan for biomass, with year-on-year changes of +571%, +63%, +0.2%, +24%, +4402%, and a loss increase of 1620% respectively [2] - In Q2 2024, the profits were 1.155 billion yuan for coal, 34 million yuan for gas, 1.616 billion yuan for wind, 875 million yuan for solar, 47 million yuan for hydro, and a loss of 390 million yuan for biomass, with sequential changes of -59.12%, -93.66%, -33.06%, +136.49%, +840%, and a loss increase of 680% respectively [2] Profitability Forecast - The report adjusts the net profit forecasts for 2024E-2026E to 12.33 billion yuan, 12.72 billion yuan, and 13.22 billion yuan respectively, down from previous estimates of 16.37 billion yuan, 16.73 billion yuan, and 17.05 billion yuan [3] - The corresponding EPS for these years is projected to be 0.79 yuan, 0.81 yuan, and 0.84 yuan, with P/E ratios of 10, 10, and 9 respectively [3] - The average on-grid settlement price for the company's power plants in China for H1 2024 was 498.70 yuan per MWh, a year-on-year decrease of 3.21% [3] Market Position - The company is positioned to benefit from the ongoing trend of energy transition and significant cash flow improvement [3]