HPI(SH:600011) GOLDEN SUN SECURITIES·2024-11-01 01:47Investment Rating - The report maintains a "Buy" rating for Huaneng International [3][5] Core Views - The company experienced a decline in net profit due to asset impairment, but its coal power segment shows steady profitability and growth in renewable energy [1][2][3] - The overall profitability is expected to improve as the company transitions towards renewable energy sources, with significant growth potential in the coming years [3] Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of CNY 184.40 billion, a year-on-year decrease of 3.62%, and a net profit attributable to shareholders of CNY 10.41 billion, down 17.12% [1] - The third quarter alone saw revenue of CNY 65.59 billion, a slight increase of 0.46% year-on-year, but net profit dropped by 52.69% to CNY 2.96 billion [1] - The coal power segment's profit totaled CNY 2.59 billion in Q3, down 8.97% year-on-year, while the wind power segment's profit surged by 75.68% to CNY 1.17 billion [2] Earnings Forecast - The projected net profits for 2024, 2025, and 2026 are CNY 11.70 billion, CNY 12.55 billion, and CNY 15.83 billion respectively, with corresponding EPS of CNY 0.75, CNY 0.80, and CNY 1.01 [3][4] - The expected P/E ratios for the same years are 9.5, 8.9, and 7.1 [3][4] Market Position - Huaneng International is recognized as a leading player in the national power sector, with a strong competitive advantage in coal power and significant growth opportunities in renewable energy [3]