CNNP(SH:601985) Minsheng Securities·2024-10-30 10:01Investment Rating - The report maintains a "Recommended" rating for China Nuclear Power (601985.SH) with a target price of 10.05 CNY per share [3]. Core Views - The company reported a revenue of 56.986 billion CNY for the first three quarters of 2024, a year-on-year increase of 1.6%, while the net profit attributable to shareholders decreased by 4.22% to 8.934 billion CNY [1]. - The total power generation for Q1-Q3 2024 was 1,603.88 billion kWh, a year-on-year increase of 2.70%, but nuclear power generation declined by 2.74% due to increased maintenance days for several nuclear units [1]. - The company has a robust nuclear power reserve with 25 operational units and 18 units under construction or awaiting approval, expected to enhance performance from 2024 to 2029 [1]. - The report forecasts net profits for 2024, 2025, and 2026 to be 10.849 billion CNY, 12.150 billion CNY, and 13.315 billion CNY respectively, with corresponding EPS of 0.57 CNY, 0.64 CNY, and 0.71 CNY [2][4]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 19.545 billion CNY, a year-on-year decrease of 1.25%, while net profit was 3.052 billion CNY, down 7.1% year-on-year [1]. - The gross margin for Q3 2024 was 47.26%, a decrease of 0.97 percentage points year-on-year, and the net margin was 28.63%, down 1.24 percentage points [1]. Power Generation - The total power generation for the first three quarters of 2024 was 1,603.88 billion kWh, with nuclear power generation at 1,356.38 billion kWh, reflecting a decline due to maintenance [1]. - New energy generation saw significant growth, with solar and wind power generation increasing by 50.10% and 45.91% respectively [1]. Future Outlook - The company plans to commission 12 new nuclear units from 2024 to 2029, adding a total capacity of 12.632 million kW, which is expected to boost future earnings [1]. - Significant infrastructure investments were noted, with total construction expenditures reaching 202.596 billion CNY in the first three quarters of 2024, a year-on-year increase of 31.92% [1].