CNNP(601985) 浙商证券·2025-02-18 08:23Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [8]. Core Insights - The company is positioned as a leading clean energy player under the China National Nuclear Corporation, with a strong focus on nuclear power, which accounted for nearly 85% of its revenue in 2023 [1][16]. - The nuclear power sector in China is entering a high-growth cycle, driven by government policies aimed at increasing nuclear energy's share in the overall energy mix, projected to reach 10% by 2035 [2][37]. - The company is actively expanding its nuclear and renewable energy capacities, with significant investments planned for the coming years, including a capital increase of 14 billion RMB to support project construction [4][5]. Summary by Sections Section 1: Nuclear Power as a Foundation - The company is the only nuclear power operation platform under the China National Nuclear Corporation, focusing on nuclear, wind, and solar energy projects [1][16]. - The company has maintained stable performance, with revenue growth from 52.76 billion RMB in 2020 to 74.96 billion RMB in 2023, reflecting a compound annual growth rate of approximately 12.76% [25]. Section 2: Accelerated Nuclear Approvals - The Chinese government has emphasized the urgent need for nuclear power development, with approvals for new projects returning to a normalized pace, approving 11 new units in 2024 [2][33]. - The nuclear power operating licenses are scarce, with only four companies currently qualified to operate in this sector, leading to a concentrated competitive landscape [41]. Section 3: Dual-Drive of Nuclear and Renewable Energy - The company has a total installed capacity of 23.75 million kW in nuclear power and over 36 million kW in non-nuclear clean energy, with plans for further expansion [3][16]. - The company has increased its market-based trading of nuclear power, with the proportion of market-based electricity sales rising from 33.71% in 2019 to 42.65% in 2023 [3][21]. Section 4: Profit Forecast and Valuation - The company is expected to achieve revenues of 75.57 billion RMB in 2024, with a projected growth of 0.82%, and net profits of 10.77 billion RMB, reflecting a growth of 1.37% [5][13]. - The estimated price-to-earnings ratios for 2024, 2025, and 2026 are 18, 16, and 15, respectively, indicating a favorable valuation outlook [5][13].