福能股份：业绩略低于预期，省内海风审批有望加速

Investment Rating - The report maintains a "Buy" rating for Funeng Power (600483 SH) [3] Core Views - Q3 2024 results slightly below expectations with revenue of RMB 3 82 billion (-4 13% YoY) and net profit of RMB 585 million (-16 6% YoY) [3] - Power generation declined 3 51% YoY in Q3 2024 mainly due to coal-fired unit maintenance offsetting benefits from lower coal costs [3] - Newly approved offshore wind projects totaling 660MW with good wind resources expected to start operation by end-2026 [3] - Fujian province expected to accelerate offshore wind approvals with more reasonable pricing mechanisms improving project returns [3] Financial Performance - 2024-2026 net profit forecasts maintained at RMB 2 988 billion RMB 3 145 billion and RMB 3 47 billion respectively [3] - 2024-2026 EPS projected at RMB 1 12 RMB 1 18 and RMB 1 30 with PE ratios of 8x 8x and 7x [3][4] - 2024-2026 revenue growth rates forecast at -0 91% 3 23% and 5 23% respectively [4] - ROE expected to remain stable around 12% from 2024-2026 [4] Project Development - Total approved thermal power capacity reaches 2 62GW including newly approved Quanhui Phase II project [3] - Offshore wind projects under construction through joint ventures total 900MW with 500MW already operational [3] - Offshore wind turbine prices have dropped to RMB 3 680 kW nearly half of 2021 peak levels [3] Industry Outlook - Fujian province plans to add 10 3GW of offshore wind capacity during 14th Five-Year Plan period [3] - Offshore wind approval process expected to accelerate in 2024-2025 with more reasonable pricing mechanisms [3] - Fujian's offshore wind resources ranked first in China supporting higher project returns [3]