CHINA RES POWER(00836) 申万宏源·2024-08-29 02:21Investment Rating - The report maintains a "Buy" rating for China Resources Power (00836) [4] Core Views - The company reported a revenue of HKD 51.12 billion for the first half of 2024, a slight decrease of 0.71% year-on-year, while the net profit attributable to shareholders reached HKD 9.36 billion, marking a significant increase of 38.9% year-on-year, exceeding expectations [4] - The core profit from thermal power has rebounded, driven by cost optimization, contributing HKD 2.715 billion to core profits, which is 32.8% of the total core profit, an increase of HKD 1.989 billion year-on-year [4] - The company has made significant progress in its renewable energy capacity, with a total installed capacity of 24.125 million kW, accounting for 38.4% of total capacity, and plans to invest HKD 44.6 billion in renewable energy projects in 2024 [5] Summary by Relevant Sections Financial Performance - For the first half of 2024, the total electricity sales volume reached 98.24 billion kWh, a year-on-year increase of 6.2%, with thermal power sales volume at 72.147 billion kWh, up 3.4% [4] - The average coal price decreased by 10.6% year-on-year to RMB 934.6 per ton, while the unit fuel cost also fell by 10.7% to RMB 276.5 per MWh [4] - The company’s revenue projections for 2024-2026 have been revised upwards to HKD 149.18 billion, HKD 173.56 billion, and HKD 215.60 billion respectively, with corresponding PE ratios of 7.4, 6.4, and 5.1 [5][6] Renewable Energy Development - The company added 2.064 million kW of new renewable energy capacity in the first half of 2024, with wind and solar projects contributing 504,000 kW and 1.56 million kW respectively [4] - Despite weaker wind and solar conditions, the average utilization hours for wind and solar power were still above the national industry average by 89 and 79 hours respectively [4] - The company aims to achieve a renewable energy capacity of over 50% by the end of the 14th Five-Year Plan [5]