Huaneng Hydropower(SH:600025)2024-08-28 13:46Investment Rating - The report maintains a "Recommended" rating for Huaneng Hydropower [4] Core Views - The company reported a revenue of 11.88 billion yuan for the first half of 2024, a year-on-year increase of 13.10%, and a net profit attributable to shareholders of 4.169 billion yuan, reflecting a year-on-year growth of 22.47% [2] - The company's profitability has improved, with a return on equity (ROE) of 5.97%, up 1.78 percentage points year-on-year, and a gross profit margin of 59.03%, an increase of 1.34 percentage points [2] - The increase in water inflow and electricity prices is expected to drive revenue growth, with hydropower generation reaching 44.588 billion kWh, a year-on-year increase of 8.99% [2][3] Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 7.461 billion yuan, a year-on-year increase of 19.61%, and a net profit of 3.104 billion yuan, reflecting a year-on-year growth of 24.37% [2] - The operating cash flow for the first half of 2024 was 7.536 billion yuan, a year-on-year increase of 6.76%, indicating stable growth [2] Hydropower Generation - The company expects strong hydropower generation performance in the second half of 2024, with new projects like the Toba and Huanliangbao hydropower stations contributing to capacity growth [3] - The average on-grid electricity price for the first half of 2024 was 0.257 yuan/kWh, a slight increase of 0.66% year-on-year [2] Future Outlook - The company plans to add 10 million kW of new energy capacity during the 14th Five-Year Plan period, with significant growth expected in renewable energy generation [3][9] - The forecasted net profits for 2024, 2025, and 2026 are 8.813 billion yuan, 9.919 billion yuan, and 10.830 billion yuan, respectively, with corresponding price-to-earnings ratios of 23.51x, 20.89x, and 19.13x [9][10]