HDPI(SH:600027) Guoxin Securities·2024-08-23 08:00Investment Rating - The investment rating for the company is "Outperform the Market" [5][12]. Core Views - The company's revenue decreased due to a decline in electricity generation, grid electricity prices, and coal trading volume, but the net profit attributable to shareholders increased significantly [1][6]. - The company plans to acquire high-quality assets from China Huadian, which is expected to enhance its installed capacity and profitability [1][11]. - The company has seen a growth in net profit primarily due to a decrease in coal prices, with the average coal price for the first half of 2024 being 970.88 RMB/ton, down 11.16% year-on-year [1][6]. Summary by Relevant Sections Financial Performance - In H1 2024, the company achieved revenue of 53.181 billion RMB (+10.54%) and a net profit of 3.223 billion RMB (+24.84%) [1][6]. - The electricity generation was 101.299 billion kWh (-5.85%), and the grid electricity price was 509.94 RMB/MWh (-3.25%) [1][6]. - The company's net profit growth was attributed to a decrease in coal prices, with a significant increase in non-recurring net profit by 43.31% [1][6]. Asset Acquisition - The company intends to acquire 80% of Jiangsu Company and several other stakes in various companies, which will increase its installed capacity by 27.16% to 74.7881 million kW [1][11]. - The total installed capacity of the acquired assets is 15.9728 million kW, including 7.55 million kW of coal power and 8.4228 million kW of gas power [1][11]. Future Outlook - The company expects continued growth in its thermal power capacity, with 603.13 million kW of approved and under-construction capacity [11]. - The forecasted net profits for 2024-2026 are 6.071 billion RMB, 6.753 billion RMB, and 7.421 billion RMB, respectively, with corresponding EPS of 0.59, 0.66, and 0.73 RMB [12][14].