CHINA POWER(HK:02380) Guohai Securities·2024-08-26 15:11Investment Rating - The report maintains a "Buy" rating for China Power (02380) [1] Core Views - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching RMB 26.47 billion, up 24.18% year-on-year, and net profit attributable to shareholders at RMB 2.57 billion, up 52.98% year-on-year [3][4] - The company plans to distribute a special dividend of RMB 0.05 per share, totaling approximately RMB 619 million, which represents 24.1% of the net profit for the first half of 2024 [3] Performance Summary - The company's net profit for H1 2024 increased by 53.0%, with profits from thermal, wind, and solar power segments showing substantial growth of 97.2%, 34.9%, and 46.5% respectively [4] - The hydropower segment turned profitable with a net profit of RMB 770 million in H1 2024, compared to a loss of RMB 150 million in H1 2023, driven by an 89.85% increase in hydropower sales volume [4] - The decline in coal prices positively impacted the thermal power segment, leading to a significant profit increase [4] - The company added 3.3 GW of new clean energy capacity in H1 2024, contributing to the growth in wind and solar power profits [4] Financial Forecasts - The report projects revenues of RMB 49.39 billion, RMB 53.40 billion, and RMB 58.02 billion for 2024, 2025, and 2026 respectively, with corresponding net profits of RMB 5.01 billion, RMB 5.96 billion, and RMB 6.66 billion [7][8] - The expected P/E ratios for the years 2024, 2025, and 2026 are 8, 6.8, and 6.08 respectively, indicating a favorable valuation outlook [8]