Jingneng Power (600578): Performance in line with expectations Thermal power assets are still undervalued

Jingneng Power (600578): Performance in line with expectations Thermal power assets are still undervalued

Continuing high growth, 19H1 was in line with expectations. 19H1 companies achieved revenue of 80.

300 million (previously +26.

6%), net profit attributable to mother 6.

8 billion (previously +124.

8%), net of non-attributed net profit 6.

6.4 billion (previously +146.

4%).

The company’s revenue and net profit continued the high growth trend of Q1, and its performance was in line with expectations.

The report summarizes the company’s standard coal unit price deduction minus 3.
.

9%, excluding tax electricity price increased by 2 in ten years.

94%, utilization improvement in most areas.

In the reporting year, seven holding power plants turned losses into profits, and the newly commissioned Xilin Gol Power Plant was profitable.

The company’s installed capacity was high (32% of the units under construction accounted for the existing units), and profitability continued to improve with the decline in coal prices.

Maintain 19-19 profit forecast16.

2/19.

5/21.

500 million, expected 19BPS3.

64 yuan, with reference to comparable companies estimated to give the company January 19.

0-1.

2x target P / B, target price 3.

64-4.

37 yuan / share, maintain “buy”.

The three factors are generally good, and the existing generating units have turned into serious losses. According to the company’s interim report, the report indicates that the company’s unit price of standard coal has decreased by 16.

05 yuan / ton, a decrease of 3.

9%; average unit price of electricity sold is 259.

74 yuan / kilowatt-hour (excluding tax), an increase of 2 over the same period last year.

94%; Beijing-Tianjin-Tangshan / Mengxi / Northeast / Ningxia regional councils realized utilization hours of 2148/2536/2731/2670 hours, respectively, +217/88/28/703 hours. Only the Shanxi area utilization hours fluctuated slightly, coal prices,Electricity prices, using the three elements of the hour as a whole are improving.

Benefiting from the improvement of the three factors, the report pointed out that the seven holding factories turned losses into profits, and Ningdong Power (65% of the shares) increased annual profits1.

200 million, Shengle (100% shareholding) / Jinglong (100% shareholding) / Erhai (51% shareholding) increased profits by 68,870,5,585.3 million yuan.

We are optimistic that the profitability of all pilots continues to improve.

The installed capacity is high, and the profit of the supplementary unit can be expected to reach 19H1. The company’s installed capacity has reached 14.24 million kilowatts, which has been increased to 3.44 million kilowatts (+ 32%). The other units are Shiyan 2 in Hubei * 350,000 kilowatts, and Xilinguole 2 * 66 millionKilowatt units, Jinglong Power Plant added 60,000 kilowatts of installed capacity, as well as 700,000 kilowatts of newly installed Huazhou Thermal Power and 660,000 kilowatts of Jinghai Thermal Power in the reporting period.

Among them, the newly commissioned Xilinguole Power Plant in 19H1 achieved a net profit of 24 million yuan, effectively contributing to incremental profits.

In 19H1, the company’s holding unit under construction was 4.54 million kilowatts, accounting for 32% of the company’s holding operating unit. The company’s high installed capacity was relatively scarce in the thermal power sector.

We believe that with the gradual expansion of coal supply and demand in 19-21, the company is expected to effectively make new commissioning units continue to contribute incremental profits through its excellent management capabilities.

It is optimistic that the 2H coal price will continue to decline, and the profitability of participating power plants is expected to significantly improve the 19H1 company’s 杭州桑拿网 investment income of associates and joint ventures.

1 billion, before -0.

51%, and the overall profit of the company’s equity participation has again improved significantly.
The company’s equity participation in the power plant is mainly for other listed companies to send the main units in the Beijing-Tianjin-Hebei region, the coal price elasticity is relatively high.
We agree that the long-term coal supply and demand will continue to expand loosely. We are optimistic that the 2H coal price will continue to fall. From July 1 to August 20, the average closing price of coal at Qinhuangdao Port Power (5500K) was 590 yuan / ton, a cumulative decrease of 7.
.

7%, optimistic that the price of 2H coal will continue to exceed the downward trend, and we believe that the company’s 19H2 earnings in power plants will significantly 苏州夜网论坛 improve.

Maintain profit forecast and maintain 19H1 performance of “Buy” rating companies in line with expectations.

Maintain 19-19 profit forecast16.

2/19.

5/21.

500 million, expected 19BPS3.

64 yuan, with reference to comparable company’s 19-year average price-to-book ratio of 1.

1x.

Granted the company 19 years 1.

0-1.

2x target P / B, target price 3.

64-4.

37 yuan / share, maintain “Buy” rating.

Risk reminder: Coal prices fell less than expected, reducing utilization hours / risk of falling electricity prices.