Core Viewpoint - The company's 2024 performance is below expectations, with revenue of 1.84 billion and net profit of 230 million, reflecting a modest year-on-year growth of 1.86% and 3.29% respectively, primarily due to capacity constraints and delayed project deliveries [1] Financial Performance - In Q4 2024, the company achieved revenue of 820 million, a year-on-year increase of 18.17%, and net profit of 110 million, up 23.84%, indicating a recovery in business during the second half of the year [1] - The revenue breakdown includes oil and petrochemical at 480 million, nuclear engineering valves at 840 million, other valves at 470 million, and forgings at 40 million, with respective year-on-year changes of -20.62%, +35.50%, -11.44%, and +1.60% [1] - The gross margin for the oil and petrochemical business improved significantly, with a year-on-year increase of 8.93% in H1 2024 and an overall annual increase of 3.59 percentage points [1] Regional Sales Performance - Revenue in the North China region surged by 108.06% year-on-year, while the East China region saw a decline of 26.29%, indicating the effectiveness of regional sales strategy adjustments [2] Growth Drivers - The nuclear power business is entering a strategic development phase, with nuclear engineering valve revenue reaching 839 million in 2024, a 35.50% increase, accounting for 45.50% of total revenue [3] - The company has a significant technological advantage in the nuclear valve sector, with key products meeting or exceeding import standards, leading to a steady increase in market share [3] - The approval of 11 new nuclear units in 2024 is expected to drive demand for nuclear valves, supported by a robust order backlog [3] Profit Forecast and Valuation - Due to slight capacity constraints in 2024 and a production cycle of 1-2 years for nuclear products, revenue and net profit forecasts for 2025 have been reduced by 2.9% and 12.5% to 2.05 billion and 260 million respectively [4] - The target price has been adjusted down by 9.2% to 18.7, with a projected increase of 14.8% from the current price [4]

Group 1 - The core viewpoint of the article highlights China General Nuclear Power Corporation's (CGN) financial performance for 2024, reporting a revenue of 86.804 billion yuan, a year-on-year increase of 5.16%, and a net profit of 10.814 billion yuan, up 0.83% [1] - CGN plans to distribute a cash dividend of 0.95 yuan per 10 shares (tax included) to all shareholders [1] - The total electricity generated by CGN-managed nuclear power plants in 2024 reached 227.284 billion kilowatt-hours, accounting for 54.38% of the national nuclear power generation [1] Group 2 - As of the end of 2024, CGN managed 28 operational nuclear power units and 16 under construction, with installed capacities of 31,798 megawatts and 19,406 megawatts, respectively, representing 45.02% of the national total for operational and under-construction nuclear power [1] - The average market electricity price for CGN in 2024 decreased by approximately 3.85% compared to 2023 due to a decline in overall market trading prices [1] - The nuclear power sector in China is expected to see more opportunities in the coming years, with the operational and under-construction scale of nuclear power reaching the world's largest [2]