Investment Rating - The investment rating for the company is "Accumulate (Maintain)" [3] Core Views - The company is planning to issue shares and pay cash to acquire assets totaling approximately 18GW, primarily consisting of thermal power plants, which will significantly enhance its operational capacity [3] - The acquisition will diversify the company's operational regions, with a notable increase in the share of installed capacity from Jiangsu province, which will become the second-largest operational area for the company [3] - The report emphasizes the importance of stable profitability in the coal power sector, with expectations for the company's net profits to reach 5.877 billion, 6.890 billion, and 7.382 billion yuan from 2024 to 2026 [4][6] Summary by Sections Acquisition Details - The company plans to acquire 80% of Huadian Jiangsu Company, 51% of Shanghai Huadian Fuxin Company, and several other subsidiaries, totaling an installed capacity of about 18GW [3] - The assets are primarily located in Jiangsu, Guangdong, Guangxi, and Shanghai, with significant operational capacity already in place [3] Financial Performance - The company reported a net profit of 1.68 billion yuan for Huadian Jiangsu in 2023, with total equity of 6.15 billion yuan [3] - The company's total installed capacity as of December 2023 is 58.45 million kW, with coal power accounting for 46.89 million kW and gas power for 9.09 million kW [3] Market Outlook - The coal power sector is expected to stabilize in profitability, with the report indicating that the current profit margins have returned to historical reasonable levels [4] - Long-term investment opportunities are anticipated in the transition of coal power business models, particularly with the rapid development of renewable energy in Shandong province [4] Profit Forecast and Valuation - The report maintains profit forecasts for 2024-2026 at 5.877 billion, 6.890 billion, and 7.382 billion yuan, respectively, with a current price-to-earnings ratio of 13, 11, and 10 times [4][6]
华电国际:集团筹划大额资产注入 规模接近现有装机1/3