电量承压主因蓄能影响，电价助力业绩稳健表现

Investment Rating - The report maintains a "Buy" rating for Huaneng Hydropower [7] Core Views - The company's electricity generation in Q1 2024 was 16.226 billion kWh, a year-on-year decrease of 7.17%, primarily due to ineffective energy storage rather than insufficient water supply. As demand gradually recovers, abundant water storage is expected to support higher growth during peak seasons [5][6] - The electricity price in Yunnan province is anticipated to rise year-on-year due to a tight power supply-demand situation, which will help alleviate the performance pressure from the decline in electricity generation [6] - The overall performance in Q1 2024 is expected to remain stable, driven by the increase in electricity prices and the growth in renewable energy generation [6] Summary by Sections Electricity Generation Performance - In Q1 2024, the company achieved an electricity generation of 16.226 billion kWh, down 7.17% year-on-year, with grid electricity generation at 16.058 billion kWh, a decrease of 7.25% [5][6] - The main reasons for the decline include increased output from new energy sources and high operation levels of thermal power, which squeezed the space for hydropower generation [6] Price and Demand Dynamics - The Yunnan provincial government implemented a market-oriented pricing reform for coal-fired power in 2022, allowing for a 10% fluctuation around the average price over the past three years. The expected rise in electricity prices will help mitigate the impact of reduced electricity generation on the company's performance [6][7] Future Outlook - The report suggests that the core reason for the decline in electricity generation is not due to insufficient water supply but rather the ineffective release of energy storage. If the additional energy storage of 4.4 billion kWh is fully converted into electricity generation, the company would still see year-on-year growth in Q1 [6] - The commissioning of the new Toba power station in 2024 is expected to further support stable growth in annual performance [6][7]