The construction and security business contributed to revenue growth, and net profit growth to mother slowed down due to increased overhauls. In the first quarter of 2024, the company achieved operating income of 19.182 billion yuan (+4.88%), mainly due to a year-on-year increase in revenue from the construction installation and design services business; total profit of 6.341 billion yuan (+2.35%), net profit attributable to mother of 3.64 billion yuan (+3.38%); net profit after deducting non-attributable net income of 3.483 billion yuan (+0.07%). The total power generation capacity of the nuclear power units operated and managed by the company in the first quarter was 55.08 billion kWh (+0.39%), and the feed-in electricity capacity was 51.814 billion kWh (+1.83%). In the first quarter, the company completed 6 overhauls as planned (including 2 New Year's Eve overhauls) and began 3 overhauls. A total of 4 overhauls were completed and 3 overhauls began in the same period last year. As a result, the growth rate of power generation slowed when Fangchenggang Unit 3 was put into operation and Taishan Unit 1 resumed grid-connected power generation.
Taishan Unit 1 resumed normal power generation. On November 27, 2023, Taishan Unit 1 resumed grid-connected power generation. There was no material replacement or overhaul in the first quarter of 2024. The electricity capacity of the Taishan Nuclear Power Plant increased dramatically. The power generation capacity of the Taishan Nuclear Power Plant was 6.60 billion kWh, an increase of 51.24% year on year, and the feed-in power capacity was 6.166 billion kWh, an increase of 51.38% year on year. The average utilization hours of the Taishan crew in the first quarter were 1,886 hours, reaching the company's overall average utilization hours in previous years (1802 hours in the first quarter of 2024 and 1,795 hours in the first quarter of 2023), and normal operation has resumed.
Fangchenggang Unit 3 has been put into production, and Unit 4 is about to be put into operation. In the first quarter of 2024, the Fangchenggang Nuclear Power Plant generated 5.446 billion kWh, up 7.90% year on year, and the feed-in electricity capacity was 5.088 billion kWh, up 29.37% year on year. This is mainly due to the commercial operation of Unit 3 being put into commercial operation on March 25, 2023. This is mainly due to the year-on-year increase in commercial operation time in the current period. On April 9, Fangchenggang Unit 4 was successfully connected to the grid for the first time and is expected to be put into operation in the first half of this year.
There has been an increase in investment plans. The company's total planned investment for 2024 is 30.59 billion yuan, an increase of 7.2% over the previous year, including fixed asset investment of 25.21 billion yuan for technical transformation of nuclear power plants in operation, construction capital investment in nuclear power projects under construction, pre-nuclear power project development, etc.; equity investment of 380 million yuan for capital investment in projects related to the comprehensive utilization of nuclear energy; and reserve 5.0 billion yuan for market response and contingency handling.
Risk warning: Electricity prices have been lowered, electricity consumption growth has fallen short of expectations, policies have fallen short of expectations, nuclear safety risks.
Investment advice: Maintain profit forecasts and maintain a “buy” rating. It is estimated that in 2024-2026, the company's revenue will be 884.8/952.9/102.06 billion yuan; net profit to mother will be 119.8/131.2/14.42 billion yuan, a year-on-year growth rate of 12/6/11%; earnings per share are 0.24/0.26/0.29 yuan. The PE corresponding to the current stock price is 17.4/16.1/14.4x, respectively, maintaining a “buy” rating.