CNNP(SH:601985) ZHONGTAI SECURITIES·2024-08-23 09:40Investment Rating - The report assigns an "Accumulate" rating to China Nuclear Power (601985.SH) [2][12]. Core Viewpoints - China Nuclear Power is a leading player in the nuclear power sector and aims to become a world-class clean energy service provider by expanding its renewable energy business [5][6]. - The company has benefited from the resumption of nuclear power approvals since 2019, with a steady increase in installed capacity and plans for further growth in the coming years [6][10]. - The company is expected to see significant revenue and profit growth, driven by both nuclear and renewable energy operations [7][11]. Summary by Relevant Sections Company Overview - China Nuclear Power is the only nuclear power operation platform under China National Nuclear Corporation (CNNC) and has a total share capital of 18,883 million shares, with a market price of 11.42 yuan, resulting in a market capitalization of 215,647 million yuan [3][5]. Financial Performance and Forecast - Revenue is projected to grow from 80,560 million yuan in 2024 to 93,893 million yuan in 2026, with year-on-year growth rates of 7% and 8% respectively [5][11]. - Net profit attributable to shareholders is expected to increase from 11,233 million yuan in 2024 to 13,597 million yuan in 2026, with growth rates of 6% and 9% respectively [5][11]. - Earnings per share (EPS) are forecasted to rise from 0.59 yuan in 2024 to 0.72 yuan in 2026 [7][11]. Industry Dynamics - The nuclear power industry is entering a favorable phase, with a stable approval process for new projects, and the company is positioned to benefit from this trend [6][10]. - The report highlights that the average annual investment in nuclear power is expected to be around 1,860 billion yuan, indicating a robust market opportunity [6][10]. Operational Highlights - As of the end of 2023, the company operates 25 nuclear power units with a total installed capacity of 23.75 million kilowatts, and plans to add 11 more units by 2029 [5][6]. - The company has a strong focus on cost control, with stable operating costs and a significant reduction in financial expenses [24][26]. Strategic Initiatives - The company is actively expanding its renewable energy portfolio, with a target of achieving 30 million kilowatts of installed capacity by 2025 [5][10]. - Strategic investments in emerging industries and technologies are also being pursued to enhance long-term profitability [10][19].