Huadian International (600027): Electricity business volume and price rose, main business profit improved significantly
Guide to this report: Benefiting from the rise in volume and price of the electricity business, the company’s main business profit improved significantly in the first half of the year, and continued to be optimistic about the improvement of the company’s performance under the background of 杭州桑拿 falling coal prices.
Investment points: Investment advice: Benefiting from the rise in volume and price of the electricity business, the company’s main business profit improved significantly in the first half of the year, maintaining the EPS forecast for 2019-2021 to 0.
41 yuan, giving the company an average of 16 times PE in 2019, maintaining a target price of 5.
45 yuan to maintain overweight.
Event: 2019H1 revenue 437.
200 million, a five-year growth of 5.
3%, net profit attributable to mother 16.
50,000 yuan, an increase of 67 in ten years.
4%; 2019Q2 revenue 203.
2 ‰, an increase of 6 in ten years.
6%, net profit attributable to mother 8.
80,000 yuan, an increase of 193 in ten years.
Performance was slightly higher than expected.
Both volume and price rose, coal prices 厦门夜网 fell, and the profitability of the power business improved.
2019H1 revenue grows by ten in ten years.
3%: 1) Power generation business +2.9 billion (+9.
1%); 2) Heating business +3.
600 million (+12.
8%); 3) Coal business-12.
1 billion (-17.
Due to the lower gross profit margin of the coal business, the decrease in revenue from the coal business has little impact on profits.
The significant increase in net profit attributable to mothers mainly benefited from: 1) The volume and price of the power business rose, and gross profit increased by approximately 8 billion yuan.
On the income side, the online power of 2019H1 is 945.
400 million kWh, an annual increase of 5.
7%, mainly benefiting from the power contribution of the newly commissioned units. 2019H1 Holdings installed capacity increased by 4.26 million kilowatts, an increase of 8 during the same period.
6%, but the utilization hours decreased slightly (in the first half of the year due to the decline in power demand and hydropower, nuclear power squeeze, the nation ‘s thermal power utilization hours fell by 60 hours), while the tax-included on-grid electricity prices increased the most.
6% (benefit from the narrowing of electricity discounts in the market); at the cost side, the unit fuel cost of coal power is expected to gradually decrease by 3% -4%, with a cost increase of 3.
8% is less than the revenue increase of 5.
3%, so the gross margin extension increased by 1.
2) Cost reduction by 2.
600 million: administrative expenses -2.
100 million, financial expenses -0.
5 billion. Profit improvement is expected to continue and it is estimated to be at a historical low.
Continue to be optimistic about the improvement of thermal power profits under the background of falling coal prices. The company’s thermal power units account for a relatively high proportion and are expected to benefit significantly.
At the same time, the company’s current estimated budget is only 0 PB.
93 times, a historical low, lower than the industry average.
Risk factors: Electricity demand falls short of expectations, coal prices rise more than expected