CGN POWER(003816) 国泰君安·2024-08-24 08:23Investment Rating - The investment rating for China General Nuclear Power (003816) is "Buy" [1] - The target price has been raised to 5.75 RMB from the previous 4.68 RMB [1] Core Views - The company's revenue for the first half of 2024 was 39.4 billion RMB, showing a year-on-year increase of 0.3%, while the net profit attributable to shareholders was 7.11 billion RMB, up 2.2% year-on-year [4][7] - The second quarter of 2024 saw a revenue decline of 3.77% year-on-year, with a net profit of 3.51 billion RMB, reflecting a 0.93% increase year-on-year [7] - The issuance of convertible bonds is expected to alleviate financial pressure, and the approval of new nuclear power units strengthens long-term growth expectations [7] Financial Summary - The company plans to issue up to 4.9 billion RMB in A-share convertible bonds for the construction of units 5 and 6 at the Lufeng Nuclear Power Plant [7] - Capital expenditure for 2024 is projected at 30.59 billion RMB, an increase of 16.34 billion RMB from 2023 [7] - The company has received approval for six new nuclear power units, the highest number in recent years, with a total of 16 units approved or under construction [7][12] Performance Metrics - The gross profit margin for Q2 2024 was 37.9%, down 6.1 percentage points year-on-year [7] - The net profit margin for the company is projected to improve gradually, with EPS estimates for 2024, 2025, and 2026 at 0.23, 0.25, and 0.26 RMB respectively [8][10] - The company's total assets are expected to reach 414.965 billion RMB by 2024, with total liabilities projected at 236.849 billion RMB [10]