CNNP(SH:601985) Guotai Junan Securities·2024-08-31 13:11Investment Rating - The investment rating for China Nuclear Power (601985) is "Buy" with a target price of 12.73, up from the previous forecast of 10.54 [3][8]. Core Views - The company's main business shows steady growth, with significant long-term growth potential. In 2Q24, the company reported a revenue of 194.5 billion yuan, a year-on-year increase of 5.7%, and a net profit of 28.2 billion yuan, a year-on-year decrease of 6.5% [8][9]. - The company is experiencing a decrease in capital expenditure pressure, with a planned fundraising of up to 14 billion yuan for nuclear power station construction, which is expected to alleviate capital expenditure burdens [8][9]. Summary by Sections Financial Performance - In 1H24, the company achieved a revenue of 374.4 billion yuan, a year-on-year increase of 3.1%, and a net profit of 58.8 billion yuan, a year-on-year decrease of 2.7% [8]. - The company's revenue for 2024 is projected to be 78.168 billion yuan, with a net profit of 11.623 billion yuan, reflecting a growth of 4.3% and 9.4% respectively compared to 2023 [8][11]. Operational Highlights - In 2Q24, the total power generation reached 542 billion kWh, a year-on-year increase of 6.0%. Nuclear power generation was 455 billion kWh, up 0.7%, while renewable energy generation surged by 46.8% to 87 billion kWh, driven by an increase in installed capacity [8][9]. - The company’s installed renewable energy capacity reached 22.4 GW, a year-on-year increase of 54.8% [8]. Capital Expenditure and Growth Potential - The company plans to increase its capital expenditure to 121.6 billion yuan in 2024, an increase of 81.1% from 2023, which is expected to support its growth strategy [8][9]. - The approval of three new nuclear power units with a total capacity of 3.1 GW is expected to enhance the company's future growth prospects [8][9].