Datang Power(601991) 国信证券·2024-08-28 12:13Investment Rating - The investment rating for the company is "Outperform the Market" [5][11]. Core Views - The company's revenue slightly increased while net profit saw a significant rise, with a net profit of 3.108 billion yuan (+104.85%) in 2024H1, driven by lower coal prices and favorable water conditions for hydropower [1][6]. - The coal and hydropower segments experienced substantial profit growth, while the wind power segment's profits declined [1][6]. - The company has a robust pipeline of approved and ongoing projects, indicating potential for sustained future growth [1][10]. Summary by Relevant Sections Financial Performance - In 2024H1, the company achieved operating revenue of 58.31 billion yuan (+0.19%) and a net profit of 3.108 billion yuan (+104.85%), with a non-recurring net profit of 3.119 billion yuan (+145.43%) [1][6]. - The second quarter saw revenues of 27.573 billion yuan (-8.65%) and a net profit of 1.777 billion yuan (+28.71%) [1][6]. - The total profit from the coal power segment was 1.510 billion yuan (+288.13%), while the hydropower segment saw a profit of 1.032 billion yuan (+1033.02%) [1][6]. Project Development - The company approved 122 power projects with a total capacity of 4.715 million kilowatts in 2024H1, including 1.1093 million kilowatts for wind power and 3.6057 million kilowatts for solar power [10][11]. - There are 80 ongoing projects with a total capacity of 11.8692 million kilowatts, indicating a strong project pipeline for future revenue generation [10][11]. Profitability Metrics - The gross margin improved to 15.43%, an increase of 6.26 percentage points, attributed to lower coal prices and increased hydropower generation [8]. - The net profit margin rose to 7.35%, up 4.08 percentage points from the previous year [8][9]. - Return on equity (ROE) increased to 8.05%, reflecting improved profitability [9]. Future Outlook - The company forecasts net profits of 5.03 billion yuan, 5.62 billion yuan, and 6.18 billion yuan for 2024, 2025, and 2026, respectively, with expected growth rates of 268.1%, 11.9%, and 9.9% [11][12]. - The current stock price suggests a potential upside of 10%-20% compared to the estimated fair value of 2.99-3.26 yuan per share [11].