CNNP(SH:601985) Soochow Securities·2024-09-02 13:42Investment Rating - The investment rating for China Nuclear Power (601985) is "Buy" (maintained) [1] Core Views - The report highlights that the company's revenue for the first half of 2024 was 37.441 billion yuan, a year-on-year increase of 3.15%, while the net profit attributable to shareholders was 5.882 billion yuan, a decrease of 2.65% [5] - The report emphasizes stable profitability in nuclear power generation, with a projected growth of 87% from ongoing and planned projects [5] - The company is expected to maintain a net profit growth of 8% to 10% from 2024 to 2026, with a price-to-earnings ratio (P/E) of 18.2, 16.6, and 15.3 for the respective years [5] Financial Performance - Total revenue for 2022 was 71.286 billion yuan, with a year-on-year growth of 13.70%, and a projected revenue of 77.430 billion yuan for 2024, reflecting a growth of 3.30% [1] - The net profit attributable to shareholders for 2022 was 9.010 billion yuan, with a year-on-year increase of 9.66%, and is expected to reach 11.422 billion yuan in 2024, a growth of 7.51% [1] - The earnings per share (EPS) for 2024 is projected to be 0.60 yuan, with a P/E ratio of 18.19 [1] Operational Highlights - The company’s nuclear power generation capacity as of June 30, 2024, was 23.75 million kilowatts, with a total generation of 89.153 billion kilowatt-hours, a slight decrease of 1.24% year-on-year [5] - The average on-grid electricity price (excluding tax) was 0.368 yuan per kilowatt-hour, showing a decrease of 0.27% [5] - The company has ongoing projects with a total capacity of 13.92 million kilowatts and planned projects of 6.72 million kilowatts, indicating a significant growth potential [5] New Energy Sector - The report notes that the installed capacity for renewable energy reached 22.37 million kilowatts, with a total generation of 16.142 billion kilowatt-hours, marking a substantial increase of 52.87% [5] - Wind power and solar power generation increased by 50.50% and 55.07%, respectively, contributing to the overall growth in the renewable energy segment [5] - The company plans to issue REITs and engage in market-oriented debt-to-equity swaps to optimize its renewable energy assets and reduce its debt ratio [5]