CNNP(SH:601985) Huafu Securities·2024-08-31 11:00Investment Rating - The investment rating for the company is "Hold" [5][12]. Core Views - The company reported a revenue of 37.441 billion yuan for the first half of 2024, a year-on-year increase of 3.15%, while the net profit attributable to shareholders decreased by 2.65% to 5.882 billion yuan [2]. - The company has a robust reserve of 18 approved nuclear power units, which corresponds to a total capacity of 20.64 GW, indicating strong long-term growth potential [2]. - The company is expected to exceed its renewable energy targets for the 14th Five-Year Plan, with an operational capacity of 22.37 GW in renewable energy as of June 30, 2024 [3]. Summary by Sections Financial Performance - In 1H2024, the company's operating income increased by 3.15% year-on-year to 37.441 billion yuan, while net profit decreased by 2.65% to 5.882 billion yuan [2]. - The gross margin was 47.51%, down by 1.03 percentage points year-on-year, and the net margin was 28.95%, down by 0.89 percentage points [2]. - The company expects revenues of 79.875 billion yuan, 86.663 billion yuan, and 93.782 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 11.464 billion yuan, 12.411 billion yuan, and 13.455 billion yuan [4][8]. Nuclear Power Development - The company has 25 operational nuclear power units with a total installed capacity of 23.75 GW and 18 approved units under construction [2]. - The Jiangsu Xuwei Nuclear Heating Power Plant, which includes two "Hualong One" pressurized water reactors and a high-temperature gas-cooled reactor, was approved in August 2024 [2]. Renewable Energy Expansion - The company has achieved a significant increase in renewable energy output, with a total of 158.70 billion kWh generated in 1H2024, marking a 52.87% year-on-year growth [3]. - The company has secured renewable energy indicators totaling 5.7756 million kW, with 1.6 million kW from wind and 4.1756 million kW from solar [3].