HPI(SH:600011)2024-11-01 00:43Investment Rating - The report maintains an "Outperform" rating for Huaneng International, indicating a positive outlook for the company's performance relative to the market [5]. Core Views - The company's revenue for the first nine months of 2024 was CNY 184.40 billion, a year-on-year decrease of 3.62%, while net profit attributable to shareholders was approximately CNY 10.41 billion, down 17.12% year-on-year. The decline in Q3 net profit was primarily due to an asset impairment charge of CNY 1.19 billion [5]. - Despite challenges, the marginal profitability of thermal power generation showed slight improvement in Q3 2024, with domestic coal and gas power segments generating profits of CNY 6.57 billion and CNY 0.86 billion, respectively [5]. - The company added 2.1764 million kilowatts of new renewable energy capacity in Q3 2024, with significant contributions from wind and solar power, leading to a year-on-year increase in wind and solar generation of 25.65% and 71.06%, respectively [5]. - The company's debt-to-asset ratio decreased to 64.34%, the lowest since 2015, benefiting from a declining interest rate environment, which has reduced financial pressure [5]. - Profit forecasts for 2024-2026 are maintained at CNY 11.53 billion, CNY 13.76 billion, and CNY 16.64 billion, respectively, with the current stock price corresponding to a PE ratio of 10, 8, and 7 times for the respective years [5]. Summary by Sections Market Data - Closing price as of October 30, 2024: CNY 7.11 - One-year high/low: CNY 10.22/CNY 6.35 - Market capitalization: CNY 78.194 billion [2]. Financial Data - As of September 30, 2024, the company's net asset per share was CNY 3.70, and the debt-to-asset ratio was 64.34% [3]. Revenue and Profitability - Total revenue for 2023 was CNY 254.40 billion, with a projected decrease to CNY 242.47 billion in 2024, reflecting a year-on-year decline of 4.7% [6]. - Net profit for 2023 was CNY 8.45 billion, expected to rise to CNY 11.53 billion in 2024, indicating a growth rate of 36.6% [6]. Operational Performance - The company reported a significant increase in renewable energy generation, with profits from wind and solar power reaching CNY 1.17 billion and CNY 1.19 billion in Q3 2024, respectively [5].