Datang Power(601991) Tianfeng Securities·2024-08-27 07:05Investment Rating - The report maintains a "Buy" rating for the company with a target price indicating a potential upside of over 20% within the next six months [7][16]. Core Views - The company reported a significant improvement in profitability, with a 105% year-on-year increase in net profit for H1 2024, reaching 3.108 billion yuan [1]. - The share of low-carbon clean energy installations increased to 38.8%, with substantial growth in hydropower and renewable energy generation [2]. - The coal machinery segment turned profitable, while hydropower profits saw a significant increase due to improved water conditions [3]. - Investment income contributed positively to the overall performance, with 1.35 billion yuan in investment gains, primarily from coal and nuclear power investments [4]. - Future profit forecasts for 2024-2026 are projected at 4.4 billion, 5.5 billion, and 6.3 billion yuan, respectively, with corresponding P/E ratios of 12, 9, and 8 [5]. Financial Summary - For H1 2024, the company achieved revenue of 58.31 billion yuan, a slight increase of 0.19% year-on-year, while net profit surged by 104.85% [1]. - The clean energy segment added approximately 974 megawatts of new capacity, with hydropower and renewable energy contributing significantly to the total electricity generation of 122.397 billion kilowatt-hours, up 4.43% year-on-year [2]. - The coal machinery segment reported a total profit of 1.51 billion yuan, while the hydropower segment's profit reached 1.032 billion yuan, reflecting a strong recovery [3]. - The company’s financial outlook shows a steady increase in revenue and net profit over the next few years, with a projected revenue of 123.4 billion yuan in 2024 [6].