HPI(SH:600011) Huafu Securities·2024-10-31 07:47Investment Rating - The report maintains a "Buy" rating for Huaneng International, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [11][15]. Core Views - The company reported a decline in revenue and net profit for Q3 2024, with revenue at CNY 184.40 billion, down 3.62% year-on-year, and net profit attributable to shareholders at CNY 10.41 billion, down 17.12% year-on-year [1][2]. - The decrease in net profit is attributed to reduced investment income, impairment provisions, and increased losses from minority shareholders and REIT-like holders [2]. - The company is actively promoting green and low-carbon development, with significant growth in wind, solar, and hydropower performance [4]. Financial Performance Summary - For the first three quarters of 2024, the company's on-grid electricity volume increased by 1.14%, while the average on-grid settlement price decreased by 2.63% [2]. - In Q3 2024, the company recognized an asset impairment loss of CNY 1.19 billion [2]. - The total profit from coal-fired power generation for the first three quarters was CNY 6.57 billion, a year-on-year increase of 91.16% [3]. - The company’s wind, solar, and hydropower installations saw significant increases, with respective on-grid electricity volume growth rates of 16.12%, 72.92%, and 34.19% [4]. Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 has been revised down to CNY 10.44 billion, CNY 12.31 billion, and CNY 13.08 billion, respectively [5]. - The corresponding price-to-earnings ratios are projected to be 10.7, 9.1, and 8.5 times for the same period [5][6].