Incident: The company released its 2024 semi-annual report. In the first half of 2024, the company achieved revenue of 58.31 billion yuan, up 0.19% year on year; net profit to mother of 3.11 billion yuan, up 104.85% year on year; net profit after deducting 3.12 billion yuan, up 145.43% year on year; basic earnings per share of 0.1242 yuan, up 212.06% year on year. Significant increase in performance.

Total profits from coal, electricity, and hydropower increased dramatically, supporting the company's significant growth in performance. In the first half of 2024, the company achieved operating income of about 58.31 billion yuan, an increase of 0.108 billion yuan over the same period last year; realized net profit of about 4.287 billion yuan, an increase of 2.382 billion yuan over the previous year; realized net profit attributable to the owners of the parent company was about 3.108 billion yuan, an increase of 1.591 billion yuan over the previous year. Among them, total profit from coal engines (including heat) was 1.51 billion yuan, up 288.13% year on year; total profit from gas engines (including heat) was 0.35 billion yuan, up 59.04% year on year; total profit from hydropower was 1.03 billion yuan, up 1033.02% year on year; total profit from wind power was 1.13 billion yuan, down 23.06% year on year; total profit from photovoltaic power was 0.39 billion yuan, up 14.3% year on year; total profit from coal power and hydropower increased sharply.

Feed-in electricity prices have declined slightly, and power generation continues to grow. In the first half of 2024, the company's average online billing price was 462.74 yuan/megawatt-hour (tax included), down about 4.70% year on year; cumulative feed-in power consumption was about 122.3973 billion kilowatt-hours, up about 4.43% year on year; total usage time of full-caliber units was 1,800 hours, down 7 hours year on year; total heat supply completed about 98.5583 million gigajoules, up about 16.37% year on year. The company's operating enterprises and projects under construction are mainly distributed in 19 provinces, cities and autonomous regions across the country. As of the first half of '24, the company had an installed capacity of 73,734.862 megawatts, including 45,124 megawatts of coal-fired power, 6,632.8 megawatts of thermal power, 9,204.73 megawatts of hydropower, 8,028.81 megawatts of wind power, and 4,744.522 megawatts of photovoltaic power generation.

There are sufficient projects under construction and approval to vigorously promote the clean energy transition. In the first half of 2024, the company's clean energy added 973.898 megawatts of installed capacity, including 1.24 megawatts of thermal power and combustion engines, 564.32 megawatts of wind power, and 408.338 megawatts of photovoltaics. The company's share of low-carbon clean energy installed further increased to 38.80%, an increase of 1.05 pct over the end of last year. In addition, in the first half of 2024, the company approved 122 power projects with an approved capacity of 4,714.985 megawatts, of which: 1,109.3 megawatts of wind power projects and 3,605.685 megawatts of approved capacity for photovoltaic projects; 80 power projects under construction, with a capacity of 11,869.15 megawatts, of which:

The thermal power project has a capacity of 5,746.12 megawatts; the wind power project has a capacity of 3,457.65 megawatts; and the photovoltaic project has a capacity of 2,665.38 megawatts. The company has sufficient projects under construction and approval. As the company's construction and approved projects are put into operation in the future, it will provide strong support for the company's performance growth.

Investment advice and valuation: The company develops cooperatively with thermal power and new energy sources. In the context of energy transformation, future growth is high.

According to the company's actual operating situation, we adjusted the company's profit forecast. The company's revenue for 2024 to 2026 is 128.168 billion yuan, 133.033 billion yuan, and 139.145 billion yuan respectively, with growth rates of 4.7%, 3.8%, and 4.6% respectively, and net profit to mother of 4.006 billion yuan, 4.449 billion yuan, and 5.708 billion yuan, respectively. The growth rates are 193.4%, 11.1%, 28.3%, maintaining a “buy” investment rating.

Risk warning: Project progress falls short of expectations; approval progress falls short of expectations; risk of falling electricity prices; policy progress falls short of expectations.