Huaneng Hydropower(SH:600025) Changjiang Securities·2024-09-05 03:10Investment Rating - The investment rating for Huaneng Hydropower is "Buy" and is maintained [4]. Core Views - The company's operating performance has shown steady growth, with revenue reaching 11.88 billion yuan in the first half of 2024, a year-on-year increase of 13.10%, slightly higher than the electricity generation growth of 12.15% [5][6]. - The increase in revenue is attributed to a higher proportion of renewable energy generation, which has a higher price compared to hydropower, leading to structural changes in revenue [5]. - The net profit attributable to the parent company for the first half of 2024 was 4.169 billion yuan, reflecting a year-on-year growth of 22.47% [5][6]. Summary by Sections Revenue and Profitability - In the first half of 2024, the company achieved a revenue of 11.88 billion yuan, up 13.10% year-on-year, while the net profit was 4.169 billion yuan, up 22.47% year-on-year [5][6]. - The second quarter saw a revenue of 7.461 billion yuan, a year-on-year increase of 19.61%, but the growth rate was lower than the electricity generation growth due to a significant increase in low-price flood season electricity [6]. Electricity Generation - The total electricity generation for the first half of 2024 was 46.695 billion kWh, a year-on-year increase of 12.15%, with hydropower generation increasing by 8.99% [5][6]. - The company’s wind power generation reached 271 million kWh, up 5.45%, while solar power generation surged by 290.64% to 1.836 billion kWh [5]. Future Outlook - The company is expected to benefit from the commissioning of the first unit of the Toba power station, which will provide strong support for installed capacity and electricity generation in 2024 [6]. - The forecasted earnings per share (EPS) for 2024-2026 are 0.51 yuan, 0.56 yuan, and 0.63 yuan, with corresponding price-to-earnings (PE) ratios of 21.35, 19.77, and 17.52 [6].