Event: according to the 2021 semi-annual report released on August 27, 2021H1 achieved an operating income of 53.478 billion yuan, an increase of 28.77% over the same period last year, a net profit of 3.317 billion yuan, an increase of 39.01% over the same period last year, and basic earnings per share of 0.28 yuan, an increase of 42.93% over the same period last year.
Comments: due to the upward impact of coal prices, the company deducted non-return net profit decreased compared with the same period last year. The net profit of 2021H1 increased 39.01% compared with the same period last year, mainly due to the realization of non-recurrent profit and loss of 2.224 billion yuan, an increase of 1.716 billion yuan compared with the same period last year. Among them, the investment income of increasing investment and Fuxin development and disposal of Ningxia Lingwu and Ningxia heating equity is 4.264 billion yuan, and the asset impairment loss of the proposed sale of Maohua company is 2.106 billion yuan. Excluding the impact of non-recurrent profit and loss, 2021H1 deducted 1.093 billion yuan in non-return net profit, down 48.63% from the same period last year. The decline in the company's deduction performance was mainly affected by the rise in coal prices. 2021H1's cumulative online electricity consumption was 106.398 billion kilowatt-hours, an increase of 22.21 percent over the same period last year; revenue was 53.478 billion yuan, an increase of 28.77 percent over the same period last year; and the company's operating cost was about 48.472 billion yuan, an increase of 40.21 percent over the same period last year, of which fuel cost was about 28.184 billion yuan, an increase of 52.34 percent.
Focus on high-quality thermal power assets to optimize the distribution of resources and speed up the transformation of clean energy. 1) in February, an agreement was signed to sell 65% of the equity of Ningxia Lingwu (coal-fired power generation) and 53% of Ningxia heating; 2) to complete the overall external sale of Maohua Company (coal, heat and power) within 12 months; and 3) to sign an agreement on the acquisition of shares in Hunan conventional energy (high-quality coal-fired power generation assets) in May to improve the strategic layout of the company's conventional energy. 4) signed a 37.19% equity acquisition agreement with Fuxin Development (the only new energy business integration platform of Huadian Group) in May. On the whole, at present, more than 90% of the company's thermal power units are large-capacity and high-efficiency units, while the proportion of clean energy generation capacity, including gas power generation and hydropower generation, has also increased rapidly, and the pace of the company's transformation of clean energy has been significantly accelerated.
Tap the potential stock to expand the increment, and the future performance growth can be expected. The utilization hours of 2021H1 coal-fired generating units were 2245 hours, an increase of 415 hours compared with the same period last year, and the coal consumption of power supply was 283.16 g / kWh, down 5.36g / kWh compared with the same period last year. By improving the resource utilization efficiency and continuously optimizing the thermal power asset structure, the power generation efficiency of thermal power units is obviously ahead of the industry; at the same time, the rapid increase of clean energy installation will also thicken the company's development performance and broaden the future development space.
Profit forecast: the company's net profit from 2021 to 2023 is estimated to be 50.65, 54.89, 5.897 billion yuan, compared with the same period last year, + 21.18%, 8.39% and 7.43%, corresponding to EPS 0.51, 0.56, 0.60, and the previous share price PE is 7.38, 6.81, 6.34 times, maintaining the company's "buy" rating.
Risk tips: coal prices are rising sharply; new energy installations are not as expected; electricity sales are not as expected.