Huaneng Power International (600011) Commentary Report: Rising electricity prices and overseas business or alternative discharge replacement affect cost improvement and investment income lead performance growth

Huaneng Power International (600011) Commentary Report: Rising electricity prices and overseas business or alternative discharge replacement affect cost improvement and investment income lead performance growth

Event description The company released the third quarter report of 2019: From January to September 2019, the company realized operating income of 1272.

32 ppm, an increase of 0 in ten years.

99%; net profit attributable to mother 53.

89 ppm, a 170-year increase.

95%.

The incident 杭州桑拿 commented that the increase in electricity prices and the increase in overseas business contributions may help the company successfully replace the impact of electrostatic replacement.

Affected by the decline in the demand for electricity for the whole society, the increase in the output of clean energy and the increase in coal control and outbound calls in some regions, the company’s internal power plants gradually completed 3021 in the first three quarters of 2019.

8.7 billion kWh, a decline of 7 per year.

52%, completed 2879 electricity sales.

8.9 billion kWh, a decline of 6 per year.

44%, of which coal-fired power generation in the third quarter decreased by 7 per year.

89% is the main source of the company’s annual reduction in power generation.

In fact, the company’s operating revenue in the first three 上海夜网论坛 quarters has still achieved positive growth, and it is expected that: 1) the company’s average operating electricity settlement prices in China in the first three quarters.

41,769 yuan / kWh, an increase of 0 in ten years.

14%; 2) Singapore’s business may improve, and the consolidation of projects in Pakistan will definitely contribute to the increase in revenue.

The investment income brought by the decrease in costs has surged, and the performance in the first three quarters has improved significantly.

The company’s operating costs in the first three quarters were 1071.

42 ppm, a reduction of 2 per year.

At 81%, the reduction in electricity supply and the reduction in fuel costs caused by lower coal prices are the key to reducing the cost: the January-September China Electric Coal Price Index fell by 497.

10 yuan / ton, a decrease of 36 compared with the same period last year.

99 yuan / ton, a decrease of 6.

93%.

At the same time, benefiting from the company’s long-term equity investment in Shenzhen Energy, Hainan Nuclear Power and other companies increased investment income, while investment income increased significantly9.

95 trillion, an increase of 589.

89%.

Against the background of increased income and lower costs and a significant increase in investment income, the company’s first three quarterly results increased by 170 in the past ten years.

95%.

As hydropower squeezed the space for thermal power generation to a certain extent during the flood season, the company’s internal generators in the third quarter of a single quarter gradually completed the generation of 1068.

1.2 billion kWh, a decline of 8 per year.

31%, but thanks to the increase in comprehensive electricity prices and overseas business or improvement, the company still achieved revenue of 438 in the third quarter.

15 ppm, an increase of ten years.

18%.

The reduction of the company’s own power generation will lead to a simultaneous decline in coal consumption in the third quarter, accompanied by an increase in China’s thermal coal price index and a decrease of 37.

43 yuan / ton, the company’s operating costs in the third quarter fell 2 than before.

74%.

In addition, investment income increased by 6 in a single quarter.

560,000 yuan also played a positive and important role in the company’s performance growth.

With the second quarter indicators, the company’s gross profit margin was maximized to 0.53 levels, profitability improved again.

Investment suggestions and estimates: Based on the company’s latest financial data, we adjust the company’s profit forecast and expect the company’s EPS for 2019-2021 to be 0.

35 yuan, 0.

52 yuan and 0.

65 yuan, the corresponding PE is 16.

57 times, 11.

02 times and 8.

78 times, maintaining the company’s “Buy” rating.

Risk Warning: 1.

Risk of unsustainable growth in coal prices; 2.

Risk of deterioration in power supply and demand.