Jingu Financial News | Haitong International issued a research report, stating that CGN Power (01816) achieved revenue of 39.38 billion yuan in the first half of 2024, a year-on-year increase of 0.3%; net income attributable to shareholders was 7.11 billion yuan, a year-on-year increase of 2.2%; net income attributable to shareholders excluding non-recurring items was 6.96 billion yuan, a year-on-year increase of 0.1%; EBITDA was 21.93 billion yuan, a year-on-year increase of 1.4%; diluted ROE reached 6.15%, a year-on-year decrease of 0.2 percentage points. In terms of segmented main business, revenue from electrical utilities sales reached 30.37 billion yuan, a year-on-year decrease of 1.8%, accounting for 76.9%; revenue from construction, installation, and design services reached 8 billion yuan, a year-on-year increase of 6.7%, accounting for 26.3%. Due to the completion of 10 major overhauls of nuclear power units in the first half of the year, with an increase in overhaul time compared to the same period last year, the overall grid-connected electricity generation has been somewhat pressured. In terms of electricity prices, the average settlement electricity price of the company decreased by 2.1% year-on-year due to the decrease in market-oriented trading prices in some regions.

The bank pointed out that as of the first half of 2024, the company manages a total of 28 operating units, 10 units under construction (including 6 units managed by a company entrusted by the controlling shareholder), and is expected to be put into operation starting from 2025. Among them, Unit 5 in Lufeng achieved dome lifting on April 29, 2024, entering the equipment installation stage, and is expected to start operation in 2027. In August 2024, the company newly obtained approval for 6 units, steadily increasing the medium and long-term installed capacity. Looking ahead to the second half of 2024, operational factors are expected to remain relatively stable, with 8 major overhauls planned for the latter half of the year, indicating a decrease both month-on-month and year-on-year, which is expected to lower the impact of overhauls on operations.

The bank indicated that the company is expected to have revenue of 87.12/91.95/97.05 billion yuan for FY24-26. The bank's evaluation shows a stable trend in investment income, so the bank adjusted investment income and made a positive profit forecast, raising the net income expectations. The adjusted net income forecast for FY24-26 is 18.7/20.27/21.83 billion yuan, with an adjustment magnitude of +15%/+14%/+13%. Based on the DCF model (assuming basic assumptions remain unchanged), the current target price has been raised to 3.8 Hong Kong dollars per share (+16%), maintaining an "outperform the market" rating.