Investment Rating - The report maintains an "Outperform" rating for China General Nuclear Power (1816 HK) with a target price raised to HK$3.8 per share, reflecting a 16% upside potential [3][19]. Core Insights - The company is experiencing operational pressure due to longer overhaul durations and declining electricity prices, with a slight increase in revenue and net profit for the first half of 2024 [2][16]. - The company has a stable growth outlook with an increase in approved and commissioned nuclear units, which is expected to enhance future capacity [18][19]. Financial Performance Summary - For the first half of 2024, the company reported operating revenue of RMB 39.38 billion, a year-on-year increase of 0.3%, and a net profit attributable to shareholders of RMB 7.11 billion, up 2.2% [2][16]. - The gross profit margin for H1 2024 was 38.6%, down 4.1 percentage points year-on-year, primarily due to a 7.7% rise in nuclear fuel costs [17]. - The company managed to maintain a net profit margin of 27.6% despite the challenges, with a net cash flow from operating activities of approximately RMB 12.79 billion, down 18.44% year-on-year [17] [19]. Growth Prospects - As of mid-2024, the company manages 28 operational nuclear units and has 10 under construction, with expectations for gradual operational commencement starting in 2025 [18]. - The company received approvals for six new nuclear units in August 2024, indicating a steady increase in its long-term capacity [18][19]. Future Projections - The forecast for operating income for FY24-26 is set at RMB 87.12 billion, RMB 91.95 billion, and RMB 97.05 billion respectively, with net profit estimates adjusted to RMB 18.70 billion, RMB 20.27 billion, and RMB 21.83 billion for the same period [3][19].
中广核电力：新增和核准核电机组增加，推动公司加速发展