费用及利润端，公司上半年实现毛利率38.56%，同比-4.15pct；净利率为27.55%，同比-0.23pct，盈利水平下滑或因开展大修时间多于去年同期。销售/ 管理/ 研发/ 财务费率分别为0.04%/2.92%/0.79%/6.35% ， 同比-0.01pct/-0.02pct/-0.94pct/-1.16pct，财务费用下滑主要是受到汇兑损益变动影响。China General Nuclear Power released its 2024 semi-annual report. 2024H1 achieved operating income of 39.377 billion yuan, +0.26% year over year; net profit to mother of 7.109 billion yuan, +2.16% year over year.
Benefiting from the increase in construction and security service revenue, the company's revenue increased year-on-year. China General Nuclear Power released its 2024 semi-annual report. 2024H1 achieved operating income of 39.377 billion yuan, +0.26% year over year; net profit to mother of 7.109 billion yuan, +2.16% year over year; of these, 2Q24 achieved operating income of 20.195 billion yuan, -3.77% year over year; and net profit to mother of 3.505 billion yuan, +0.93% year over year.
The commencement of Taishan Recovery Prevention 4 contributed to an increase. The total electricity volume declined slightly due to the long overhaul period. In the first half of the year, the company managed 106.01 billion kilowatt-hours of feed-in electricity, or +0.09% (subsidiary 82.013 billion kilowatt-hours, -0.19% year over year; Hongyanhe Power Station 23.997 billion kilowatt-hours, +1.03% year over year), accounting for 53.03% of the country's nuclear power feed-in electricity. Among them, Q2 achieved feed-in power of 54.196 billion kilowatt-hours, or -1.5% year-on-year. Judging from the situation of various power stations, the Daya Bay Nuclear Power Plant carried out 1 new material replacement overhaul in the first half of the year, with feed-in power capacity -32.36%; the Lingao Nuclear Power Plant did not carry out material replacement overhauls in the first half of the year, with feed-in power capacity +15.3%; the total replacement overhaul carried out at the Lingdong Nuclear Power Station in the first half of the year was longer than in the same period in 2023, and the feed-in power supply was -13.80%; benefiting from the commissioning of Fangchenggang Unit 3 in March 2023, and Fangchenggang Unit 4 was put into operation in May 2024. Electricity capacity +10.81% compared to the same period; Taishan Unit 1 Operation resumed at the end of November 2023, and the feed-in power capacity of the Taishan Nuclear Power Plant was +36.21% year-on-year. In terms of electricity prices, due to the decline in overall transaction prices in the electricity market, the company's average market-based electricity price fell 2.1% year on year.
On the cost and profit side, the company achieved a gross profit margin of 38.56% in the first half of the year, -4.15pct year on year; the net profit margin was 27.55%, -0.23pct year on year. The profit level declined or due to the fact that it took more time to carry out overhauls than in the same period last year. Sales/management/ R&D/ finance rates were 0.04%/2.92%/0.79%/6.35%, respectively, -0.01pct/-0.02pct/-0.94pct/-1.16pct. The decline in financial expenses was mainly affected by changes in exchange profit and loss.
Convertible bonds were issued to optimize the debt structure, and the units entered the production period one after another. Earlier, the company announced that it plans to issue A-share convertible corporate bonds to unspecified targets to raise no more than 4.9 billion yuan in capital for the construction of Lufeng's units 5 and 6. Construction of both projects has already started and is expected to be put into operation in 2027 and 2028, respectively. According to estimates, the internal rate of return on project capital can reach 9%. By the end of June 2024, the company managed a total of 10 nuclear power units that have been approved for FCD and are under construction. It is expected that they will be put into operation one after another starting in 2025, and profit growth is certain. On August 19, the National Standing Committee approved 5 nuclear power projects, including the company's Lufeng Units 1 and 2, Zhaoyuan Units 1 and 2, and Cangnan Units 3 and 4 commissioned by the Group.
Currently, the company is actively planning plans to acquire Huizhou and Cangnan nuclear power assets, and the company's installed capacity will be further expanded after the assets are injected.
Profit forecasting and valuation. The price and cost of nuclear power are relatively stable, and the increase in performance mainly depends on the increase in installed capacity.
The company's projects under construction are progressing steadily, and the project reserves are sufficient. With strong national support for nuclear power development, the company is expected to obtain approval for 2-4 units per year, and the parent company's assets are expected to be injected, so there is a high certainty of performance growth in the medium to long term. Maintain the company's 2024-2026 net profit forecast of 11.636, 12.335, and 13.67 billion yuan, with year-on-year increases of 8.5%, 6.0%, and 10.8%, respectively; current stock prices correspond to PE at 21.2x, 20.0x, and 18.1x, respectively, maintaining the “increase” rating.
Risk warning: Risk of safe and stable operation of nuclear power plants, approval progress falling short of expectations, project construction falling short of expectations, risk of falling electricity prices, etc.