POWERCHINA Ltd(601669) GOLDEN SUN SECURITIES·2024-08-29 01:11Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q2 performance was under pressure due to increased financial costs, but the energy and power business remains highly prosperous [3] - In H1 2024, the company achieved total revenue of 285.4 billion, a year-on-year increase of 1.3%, and a net profit attributable to shareholders of 6.34 billion, a year-on-year decrease of 6.5% [3] - The company signed new contracts worth 648.9 billion in H1 2024, representing a year-on-year increase of 7.5% [3] - The company’s renewable energy installed capacity reached 28 GW by the end of H1 2024, with a significant increase in profitability from power operations [3] Financial Performance Summary - H1 2024 total revenue: 285.4 billion, Q1/Q2 revenue: 140.3 billion / 145.1 billion [3] - H1 2024 net profit: 6.34 billion, Q1/Q2 net profit: 3 billion / 3.3 billion [3] - H1 2024 gross profit margin: 12.4%, a year-on-year increase of 0.3 percentage points [3] - H1 2024 operating cash flow net outflow: 46.7 billion, investment cash flow net outflow: 28.9 billion [3] - Expected net profit for 2024-2026: 13.2 billion / 14 billion / 15.1 billion, corresponding EPS: 0.77 / 0.81 / 0.88 [3][4] Business Segment Performance - Engineering contracting revenue: 259.5 billion, a year-on-year increase of 1.8% [3] - Power investment and operation revenue: 12.2 billion, a year-on-year decrease of 0.7% [3] - New energy operation revenue: 5.4 billion, a year-on-year increase of 7.8% [3] Market Position and Outlook - The company aims to add 30 GW of new energy capacity during the 14th Five-Year Plan period, with 10.5 GW already completed [3] - The report indicates a positive outlook for the company's profitability as the scale of renewable energy installations increases [3]