CNNP(601985) 广发证券·2024-04-30 06:32Investment Rating - The report maintains a "Buy" rating for China National Nuclear Power (CNNP) with a target price of 9.67 CNY per share, based on a 16x PE multiple for 2024 [1][3] Core Views - CNNP achieved a 17.9% YoY increase in net profit attributable to shareholders in 2023, driven by stable nuclear power operations and growth in new energy projects [1] - The company's revenue grew by 5.2% YoY to 749.57 billion CNY in 2023, with net profit reaching 106.24 billion CNY [1] - CNNP plans to issue REITs with 1.12GW of new energy projects as underlying assets, aiming to raise up to 7.5 billion CNY [1] Financial Performance - In 2023, CNNP's total power generation increased by 5.3% YoY to 209.9 billion kWh, with new energy generation surging by 66.4% [1] - The company's nuclear power generation remained stable, with a 0.67% YoY increase, while new energy generation saw significant growth due to the commissioning of 5.99GW of new capacity [1] - CNNP's management and financial expenses decreased by 7.9 billion CNY (-17.1%) and 8.4 billion CNY (-10.3%) respectively, contributing to higher profitability [1] Growth Prospects - CNNP has 17.57GW of nuclear power capacity under construction and approved, with plans to reach 30GW of new energy capacity by 2025 [1] - The company's nuclear power capacity in operation, under construction, and approved stands at 23.75GW, 12.63GW, and 4.93GW respectively as of Q1 2024 [1] - CNNP's new energy capacity in operation and under construction has already exceeded its 2025 target, with 21.34GW and 14.26GW respectively [1] Valuation and Forecast - The report forecasts CNNP's net profit attributable to shareholders to reach 114.18 billion CNY, 122.85 billion CNY, and 131.67 billion CNY for 2024-2026, with corresponding PE ratios of 15.05x, 13.99x, and 13.05x [1][2] - CNNP's EPS is expected to grow from 0.60 CNY in 2024 to 0.70 CNY in 2026, reflecting steady growth in profitability [2] Industry Outlook - China's nuclear power sector is expected to grow significantly, with projections indicating a total installed capacity of 150GW by 2035, up from 57.03GW in 2023 [26] - The report highlights the acceleration of nuclear power approvals in China, with 10 units approved annually in both 2022 and 2023, signaling a favorable policy environment for the industry [25]