CGN POWER(003816) 民生证券·2024-08-22 12:30Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [1][2]. Core Views - The company achieved a revenue of 39.377 billion yuan in H1 2024, a year-on-year increase of 0.26%, and a net profit attributable to shareholders of 7.109 billion yuan, up 2.16% year-on-year [1]. - The company has received approval for 6 new nuclear power units, expanding its construction scale to a record high, with a total installed capacity of 51.162 million kilowatts across 16 approved and under-construction units [1]. - The average on-grid electricity price has declined, impacting revenue growth, with the average market electricity price down 2.10% year-on-year [1]. - The company plans to issue convertible bonds to raise up to 4.9 billion yuan for the construction of new nuclear power units [1]. - Profit forecasts for the company are 11.835 billion yuan, 12.120 billion yuan, and 12.482 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.23, 0.24, and 0.25 yuan [2]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 39.377 billion yuan and a net profit of 7.109 billion yuan, with a gross margin of 38.56% and a net margin of 27.55% [1]. - The average operating hours for the nuclear units decreased by 2.35% year-on-year to 3659 hours, while the total on-grid electricity generated was 1060.10 billion kWh, a slight increase of 0.09% [1]. Future Outlook - The company has ambitious investment plans totaling 30.59 billion yuan for 2024, with several new units expected to commence operations between 2026 and 2028 [1]. - The report projects a steady growth in net profit and EPS over the next three years, indicating a positive long-term outlook for the company [2]. Market Position - The company is positioned to benefit from the increasing approval of nuclear power units in China, which is expected to enhance its operational capacity and market share in the energy sector [1].