CNNP(SH:601985)2024-09-03 08:00Investment Rating - The report maintains a "Recommended" rating for China Nuclear Power [2][6] 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%, and a net profit attributable to shareholders of 5.882 billion yuan, a decrease of 2.65% year-on-year [1] - The company has a robust cash flow situation with a net cash flow from operating activities of 19.571 billion yuan, despite a year-on-year decrease of 10.81% due to increased inventory [1] - The company is expected to have a significant increase in nuclear power generation capacity with the commissioning of the Zhangzhou Unit 1 by the end of the year, contributing to a total approved and under construction nuclear power capacity of 20.641 million kilowatts [2] Financial Performance Summary - For the first half of 2024, the company's gross profit margin was 47.51%, a decrease of 1.03 percentage points year-on-year, while the net profit margin was 15.71%, down 0.94 percentage points year-on-year [1] - The company forecasts net profits of 10.918 billion yuan, 11.970 billion yuan, and 13.023 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 18.92x, 17.26x, and 15.86x [2][7] - The company’s total installed capacity for renewable energy reached 22.3704 million kilowatts by the end of June 2024, with significant contributions from wind and solar power [6] Operational Insights - The company’s total power generation for the first half of 2024 was 105.295 billion kWh, a year-on-year increase of 4.43%, with nuclear power generation slightly declining due to maintenance schedules [1] - The average on-grid electricity price for nuclear power was 0.371 yuan/kWh, a slight decrease of 0.11% year-on-year, while the price for renewable energy dropped by 13.22% to 0.385 yuan/kWh [1][2]