华润电力：火电盈利大幅增长，新能源装机将加速

Investment Rating - The report assigns a recommendation for investors to accumulate shares during price dips, indicating a positive outlook for the company [1]. Core Insights - The company reported a significant net profit increase of 38.9% year-on-year for the first half of 2024, driven primarily by improved profitability in its thermal power segment due to lower coal prices [1]. - The renewable energy segment is expected to accelerate its capacity installation, targeting an additional 10GW in 2024, contributing to the company's long-term growth strategy [1]. - The current valuation corresponds to a PE ratio of 6.0 for 2024, with a projected dividend yield of 6.5%, suggesting potential for share price appreciation [1]. Summary by Sections Financial Performance - For 2024H1, the company achieved a net profit of HKD 93.6 billion, with total revenue remaining stable at HKD 511.2 billion and operating profit increasing by 26.4% to HKD 132.7 billion [1]. - The core business net profit, excluding certain one-time items, grew by 23.8% to HKD 82.7 billion, with earnings per share (EPS) rising by 39.3% to HKD 1.95 [1]. Thermal Power Segment - The thermal power segment's revenue slightly decreased by 2.8% to HKD 379.7 billion, but core profit surged by 274% to HKD 27.1 billion due to a 10.6% drop in benchmark coal prices [1]. - The average on-grid electricity price for coal power fell by 3% to RMB 416.7/MWh, while the unit fuel cost decreased by 10.7% to RMB 276.5/MWh [1]. Renewable Energy Segment - The renewable energy segment's revenue increased by 5.8% to HKD 131.5 billion, but core profit declined by 6.7% to HKD 55.6 billion due to a decrease in wind resource availability [1]. - Wind power sales volume rose by 6.9% to 224 billion kWh, but the utilization hours dropped by 9.5% to 1223 hours [1]. - The company aims to achieve a total of 40GW of new renewable energy installations by the end of the 14th Five-Year Plan [1]. Future Outlook - The company plans to accelerate renewable energy installations, with a target of 10GW for 2024 and a total operational capacity of 80.3GW by mid-2024 [1]. - The anticipated net profit for 2024 is projected to reach HKD 146.7 billion, maintaining a dividend payout ratio of 40% [1].