Datang Power(601991) 国海证券·2024-08-27 13:50Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's operating performance in Q2 2024 improved significantly, with a year-on-year increase of 98% [3] - The company reported a total revenue of 583.1 billion yuan for H1 2024, a slight increase of 0.2% year-on-year, and a net profit attributable to shareholders of 31.1 billion yuan, up 104.85% year-on-year [2] - The recovery in hydropower and thermal power performance, along with increased investment income, contributed to the improved results [3] Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 275.7 billion yuan, down 8.6% year-on-year, with a net profit of 17.8 billion yuan, an increase of 28.7% year-on-year [2] - The company's coal power profit totaled 15.1 billion yuan in H1 2024, recovering from a loss of 8.0 billion yuan in H1 2023, primarily due to a decrease in fuel prices [3] - Hydropower profits surged to 10.3 billion yuan in H1 2024 from 0.9 billion yuan in H1 2023, driven by improved water inflow [3] Investment and Growth - The company recorded investment income of 13.2 billion yuan in Q2 2024, a year-on-year increase of 63% [3] - The total installed capacity for wind and solar power increased by 0.97 GW in H1 2024, with wind power profits totaling 11.3 billion yuan, down 23% year-on-year [4] - The company expects further performance recovery in the second half of 2024 due to favorable hydrological conditions [5] Valuation and Forecast - The revenue forecasts for 2024-2026 are 1233 billion yuan, 1247 billion yuan, and 1252 billion yuan, respectively, with net profits of 50.5 billion yuan, 55.6 billion yuan, and 61.2 billion yuan [5] - The corresponding price-to-earnings ratios (PE) are projected to be 10, 9, and 8 times for the respective years [5]