Investment Rating - The report maintains a "Buy" rating for China General Nuclear Power Corporation (CGN) [3][5] Core Views - The company's 2024 interim report shows revenue of 39.38 billion yuan, a year-on-year increase of 0.26%, and a net profit attributable to shareholders of 7.11 billion yuan, up 2.16%, which aligns with expectations [3] - The company has received approval for 6 new nuclear units, ensuring long-term growth [4][5] - Cost reduction and efficiency improvements have positively impacted the company's financial performance despite a decline in average electricity prices [3][4] Summary by Sections Financial Performance - In the first half of 2024, CGN achieved an on-grid electricity generation of 106 billion kWh, a slight increase of 0.09% year-on-year, while electricity sales revenue decreased by 1.78% due to lower market prices [3] - The company's operating costs rose by 7.51%, leading to a decline in gross profit margin by 4.5 percentage points [3] - R&D expenses decreased by 370 million yuan, and financial expenses fell by 450 million yuan, contributing to a slight increase in net profit [3] Growth Prospects - As of June 30, 2024, CGN has 10 nuclear units under construction, with a stable growth forecast for nuclear power capacity from 2024 to 2030 [4] - The approval of 11 new nuclear units by the State Council, with CGN receiving the most at 6 units, further supports the company's growth trajectory [4] Profit Forecast and Valuation - The report forecasts net profits for 2024, 2025, and 2026 to be 11.87 billion yuan, 12.4 billion yuan, and 13.07 billion yuan, respectively, with growth rates of 10.7%, 4.4%, and 5.4% [5][7] - The current price-to-earnings ratios for 2024, 2025, and 2026 are projected to be 21, 20, and 19 times, respectively [5][7] - The dividend yield for 2024-2026 is expected to be 2.2%, 2.3%, and 2.4% [5]
中国广核:业绩符合预期 新增核准6台机组保障公司长期成长