CNNP(SH:601985) Guoyuan Securities·2024-05-06 05:00Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected stock price increase of over 20% in the next six months compared to the Shanghai Composite Index [7]. Core Views - The company achieved a revenue of 74.957 billion yuan in 2023, a year-on-year increase of 5.15%, and a net profit attributable to shareholders of 10.624 billion yuan, up 17.91% year-on-year [2][3]. - In Q1 2024, the company reported a revenue of 17.988 billion yuan, a slight increase of 0.53%, and a net profit of 3.059 billion yuan, up 1.18% year-on-year [2]. - The company has maintained a strong operational performance with a total power generation of 209.858 billion kWh in 2023, marking a 5.30% increase year-on-year [3]. - The net profit margin improved to 25.90% in 2023, an increase of 3.00 percentage points year-on-year, and further increased to 31.38% in Q1 2024 [4]. Summary by Sections Financial Performance - The company reported a compound annual growth rate (CAGR) of 12.94% in revenue and 23.19% in net profit from 2019 to 2023 [3][12]. - The gross profit margin for 2023 was 44.62%, while the net profit margin was 25.90% [4]. Operational Efficiency - The company operated 25 nuclear power units safely and stably, with 18 units achieving a perfect WANO index score [5]. - The company completed 17 major overhauls in 2023, optimizing the average duration of routine overhauls by 3.4 days compared to 2022 [5]. Project Development - The company has a robust pipeline of nuclear projects, with over 10 units in the preparatory phase and maintaining a leading position in project approvals [6]. - The company has successfully completed several projects, including the Fuzhou 5/6 and Tianwan 3/4 units, and has made significant progress in renewable energy projects [5]. Profit Forecast - The company is expected to achieve net profits of 11.469 billion yuan, 12.692 billion yuan, and 13.677 billion yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 15.21, 13.75, and 12.76 [6][10].