CHINA LONGYUAN(001289) 长江证券·2024-09-10 07:11Investment Rating - The report maintains a "Buy" rating for the company [5][6]. Core Views - The company's net profit attributable to shareholders for the first half of 2024 was 3.827 billion yuan, a year-on-year decrease of 22.86%. The decline in profit was primarily due to weak wind conditions affecting electricity generation, leading to a 9.93% year-on-year decrease in revenue for the second quarter [4][5]. - Despite the short-term performance pressure, the report suggests that this should not be extrapolated linearly. The high base effect from last year's record wind utilization hours is expected to weaken, and there is optimism for marginal recovery in wind conditions and growth from capacity expansion [4][5]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 18.883 billion yuan, a decrease of 4.94% year-on-year. The installed capacity increased by 2.2867 million kilowatts, with wind power contributing 595,000 kilowatts and solar power 1.6917 million kilowatts. The total installed capacity reached 37.88 million kilowatts, a year-on-year increase of 19.79% [4][5]. - Wind power generation was 31.585 billion kilowatt-hours, down 4.60% year-on-year, while solar power generation increased by 122.87% to 3.589 billion kilowatt-hours due to the expansion in installed capacity [4][5]. Market Conditions - The average selling price of electricity was 423 yuan per megawatt-hour, a decrease of 7.44% year-on-year. The selling price for wind power was 441 yuan per megawatt-hour, down 5.97%, and for solar power, it was 283 yuan per megawatt-hour, down 9.87% [4][5]. Future Outlook - The report forecasts earnings per share (EPS) for 2024, 2025, and 2026 to be 0.93, 1.05, and 1.17 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 17.43, 15.37, and 13.78 [5].