皖能电力20240715

Company and Industry Overview * Industry: Power generation and distribution * Company: Anhui Electric Power Co., Ltd. (皖能电力) * Focus: Discussion on financial performance, operational updates, and future outlook for the company and the industry. Key Points Financial Performance * Coal Consumption: * Q1: 295 grams per kilowatt-hour (g/kWh) * H1: 298 g/kWh (excluding Xinjiang) * Xinjiang: Similar to Anhui, but slightly higher due to open-cycle units * Profitability: * H1: Profitability of 0.4 yuan per kilowatt-hour (kWh) (profit before tax) * Provincial Base: Profitability of 0.3-0.4 yuan/kWh * Overall: Profitability of 0.4 yuan/kWh * Fixed Costs: * Expected to remain relatively stable compared to last year * Increase in salary expenses due to retroactive payment in Q4 2023 * Investment Income: * Over 500 million yuan in H1, up 25% from the same period last year * Mainly from equity investments in power plants, including: * Anhui Provincial Power Grid Co., Ltd. (省管) * Pingshan Power Generation Co., Ltd. (平山) * Shanxi Road Guang Power Generation Co., Ltd. (山西路光) * HuaiBei Mining Group Co., Ltd. (淮北矿业) * Huaibei Power Generation Co., Ltd. (淮北发电) * Taxation: * Impact on overall performance expected to be minimal (less than 1/4) Operations and Projects * Installed Capacity: * Controlling installed capacity: 14.95 million kilowatts (MW) * Equity installed capacity: 20.49 million MW * Construction Projects: * Two gas-fired units in Anhui Province (completed in April 2024) * Three coal-fired units under construction: * Xinjiang Huaian Xihaisan Power Plant (2x660 MW) * Anhui Qianji Power Generation Co., Ltd. Phase II Project (1x1000 MW) * 300 MW wind power project in Anhui Province (construction progress dependent on grid transformation) * 800 MW photovoltaic project in Xinjiang (construction started, full capacity commissioning uncertain) * Other Projects: * Lixin Waste Incineration Power Plant Phase II (completed) * Lixin Coal-fired Power Plant Phase II (construction expected to complete in September 2024) * Huainan Power Generation Co., Ltd. Phase II Project (construction expected to complete in 2025) * Anhui Coal Group Co., Ltd. Phase II Project (construction expected to complete in 2025) * Anhui Energy Co., Ltd. Anqing Phase III Project (construction expected to complete in 2025) * Huainan Coal-fired Power Generation Co., Ltd. Phase II Project (construction expected to complete in 2025) Market Outlook * Electricity Demand: * Expected to grow at a high speed of over 10% in Anhui Province * Growth driven by economic development and industrial transfer * Electricity Supply: * Coal-fired power plants expected to remain profitable due to high utilization hours * Natural gas-fired power plants expected to face challenges due to high natural gas prices * Electricity Prices: * Expected to remain stable with slight downward trend * Government's focus on maintaining a balance between electricity prices and coal prices Other Important Points * Spot Market: * Pilot project conducted in May 2024, with expected results in September 2024 * Expected to have a positive impact on electricity prices * Coal Supply: * Anhui Electric Power Co., Ltd. is actively seeking coal supply from outside the province to mitigate the risk of supply shortages * Stock Price: * Expected to recover based on the company's strong financial performance and growth prospects