Incident: According to the company's WeChat account, China's largest offshore photovoltaic project, CNNC Tianwan 2 million kilowatt beachfront photovoltaic demonstration project, officially began construction in Lianyungang, Jiangsu on May 19.
Comment:
Construction of the largest offshore photovoltaic project in China to build a nuclear photovoltaic integrated clean energy demonstration base officially began construction on May 19, 2024, with a total investment of about 9.88 billion yuan. The project supports the construction of a 200,000 kilowatt/400,000 kilowatt-hour energy storage project. The project owner company is CNNC Jiangsu New Energy Co., Ltd., and the company indirectly holds 90% of the project company's shares through its holding subsidiaries CNNC Huineng Co., Ltd. and Jiangsu Nuclear Power Co., Ltd. The demonstration project has a design operating life of 25 years, and the annual power generation capacity after it is officially put into operation is about 2,234 billion kilowatt-hours. After the project is fully completed, it will be interconnected with the Jiangsu Tianwan Nuclear Power Plant managed by the company to form a large-scale clean energy base with a total installed capacity of more than 10 million kilowatts.
Continuing to build the REITs platform, Green Power successfully achieved self-hematopoiesis
2024M4 announced that the holding subsidiary CNNC Huineng plans to use 1.120,500 kilowatts of wind power and photovoltaic assets as the underlying asset to issue consolidated REITs, with an issuance scale of no more than 7.5 billion yuan. In total, CNNC Huineng and related parties subscribe to a limited partnership share of 15% to 20% to achieve consolidated management. At the same time, the company plans to release public REITs in 2023M11, with an issuance scale of no more than 2 billion yuan. The company issued REITs to raise funds twice in a row to achieve LEVEN's own hematopoiesis, which is expected to reduce the capital requirements brought about by GREEN's asset construction to a certain extent.
The 24-year capital expenditure plan was +52% year-on-year. Optimistic that the orderly commissioning of nuclear power will drive performance growth, the company released an investment plan for 2024. According to the company's development plan and business plan, the total investment plan for 2024 was 121,553 billion yuan, +52% year over year, mainly for nuclear power, multi-use nuclear energy, new energy, single fixed asset investment projects, and investment capital injection and acquisition projects. The company's capital expenditure support continues to be high. It is expected that in 2024-2027, the company expects to put into operation 1, 1, 2, and 5 nuclear power units, respectively. It is expected that the orderly commissioning of nuclear power units will drive continued growth in performance.
Profit Forecasts and Investment Ratings
Nuclear power+new energy two-wheel drive, the company has stable operation and continuous growth. We estimate that the company's net profit for 2024-2026 will be 113, 125, and 13.7 billion yuan, +6.6%, +10.6%, and +9.2% over the same period. The corresponding PE is 16, 14, and 13 times, respectively, to maintain a “buy” investment rating.
Risk warning: risk of nuclear safety accidents; risk that the progress of nuclear power units under construction falls short of expectations; risk that new energy business development falls short of expectations; risk of weakening social demand for electricity.