Investment Rating - Maintains an "Overweight" rating with a target price of HKD 5.30 [2] Core Views - The company's 3Q24 performance met expectations with stable growth in coal-fired power generation and relatively stable electricity prices [2] - Revenue for 1~3Q24 was RMB 84.8 billion, a year-on-year decrease of 6.5%, while net profit attributable to the parent company was RMB 5.16 billion, a year-on-year increase of 14.6% [2] - 3Q24 revenue was RMB 31.6 billion, a year-on-year increase of 1.1%, and net profit attributable to the parent company was RMB 1.93 billion, a year-on-year increase of 0.9% [2] - The company plans to issue shares and pay cash to acquire coastal thermal power assets from the group, with a total consideration of RMB 7.17 billion [2] Financial Performance - 3Q24 gross profit was RMB 3.13 billion, a year-on-year increase of 2.2%, with a gross margin of 9.9%, up 0.1 ppts year-on-year and 1.1 ppts quarter-on-quarter [2] - 3Q24 electricity generation was 63.0 billion kWh, a year-on-year increase of 3.2%, with coal-fired electricity generation at 53.4 billion kWh, a year-on-year increase of 16.7% [2] - The average tax-included electricity price in 3Q24 was RMB 0.511/kWh, a year-on-year increase of 1.6% and a quarter-on-quarter increase of 0.1% [2] Asset Acquisition - The company plans to acquire approximately 16.0 GW of conventional energy assets in Jiangsu and other regions through issuing shares and paying cash [2] - The total consideration for the acquisition is RMB 7.17 billion, with RMB 3.43 billion paid in shares and RMB 3.43 billion in cash [2] - The PB valuation of the acquired assets is approximately 1.6x, and the PE valuation is approximately 13.5x based on the 2023 net profit of RMB 530 million [2] Market Data - The current stock price is HKD 3.77, with a 52-week price range of HKD 3.07 to HKD 5.29 [3] - The current market capitalization is HKD 38.558 billion, with 10.228 billion shares outstanding [3] Financial Summary - Revenue for 2024E is expected to be RMB 124.897 billion, a year-on-year increase of 7.32% [5] - Net profit for 2024E is expected to be RMB 6.442 billion, a year-on-year increase of 40.01% [5] - The PE ratio for 2024E is 5.5x, and the PB ratio is 0.48x [5]
华电国际电力股份：华电国际电力三季报点评：业绩符合预期，煤电电量恢复增长