CHINA POWER(02380) 海通证券·2024-08-29 00:45Investment Rating - The report maintains an "Outperform" rating for the company [4] Core Views - The company has shown comprehensive performance recovery, with a special dividend of 0.05 CNY per share, totaling 620 million CNY, marking its 20th anniversary [4] - The company reported a revenue of 26.47 billion CNY for the first half of 2024, a year-on-year increase of 24.2%, and a net profit of 4.59 billion CNY, up 80.1% year-on-year [4] - The hydropower segment achieved a net profit of 770 million CNY in 24H1, with a significant increase in electricity sales volume by 90% year-on-year [4] Summary by Sections Hydropower - In 24H1, the hydropower segment recorded a net profit of 770 million CNY, with a profit per kWh of 0.072 CNY, compared to a loss of 150 million CNY in 23H1 [4] - The increase in profit is attributed to improved water inflow, with utilization hours rising by 775 hours year-on-year to 1821 hours [4] Thermal Power - The thermal power segment achieved a net profit of 1.11 billion CNY in 24H1, with a profit per kWh of 0.039 CNY, compared to 560 million CNY in 23H1 [4] - The decrease in fuel costs contributed to the performance, with unit fuel costs dropping to 0.274 CNY per kWh from 0.298 CNY per kWh in 23H1 [4] Renewable Energy - The wind power segment reported a net profit of 1.96 billion CNY in 24H1, with a profit per kWh of 0.149 CNY, while the solar power segment achieved a net profit of 1.14 billion CNY [4] - The sales volume for wind and solar power increased by 57.5% and 96.7% year-on-year, respectively [4] Earnings Forecast and Valuation - The company is expected to achieve a net profit of 5.12 billion CNY in 2024, with earnings per share projected at 0.41 CNY [4] - The report suggests a valuation premium due to the recovery in thermal power profitability and quality asset injections, with a target price range of 4.05 to 4.96 HKD based on a PE ratio of 9-11 for 2024 [4]