Huadian International (600027) 2019 Semi-annual Report Review: Volume and Price Efficiency Rise, Performance Improves Quarterly
Interim report revenue for 2019 + 5%, net profit attributable to the parent + 66% The company’s 2019H1 revenue +5.
21% to 437.
2.0 billion, net profit attributable to mother +67.
43% to 16.
The 2019Q1 performance +12.
60% to 7.
740,000 yuan, 2019Q2 performance +193.
41% to 8.
The rise in volume and price on the income side and the increase in cost-side efficiency are the main reasons for performance growth.
21% or 21.
6.5 billion, mainly due to installed capacity +8.
64%, power generation +5.
54%, electricity price +1.
56%; ② cost +3.
81% or 13.
US $ 8.8 billion, less than the increase in revenue, maximizing fuel efficiency and operating efficiency; ③ Fuel efficiency: Calculate the unit price of standard coal +0.
86%, coal consumption fell by 0%.
Therefore, the unit fuel cost of electricity sales has dropped to zero.
01%, but not as good as Huaneng International 5.
57% reduction; ④ Operational efficiency improvement: Measure non-fuel cash cost of electricity -5.
38%, which is equivalent to thickening profits6.
5 ppm; ⑤ period cost rate -1 pct to 7.
46%, mainly due to lower financing costs, financial expenses fell 53.26 million yuan.
⑥ The performance growth rate is increasing quarter by quarter, mainly due to the increase in electricity prices in Q2 2019, and the error rate has dropped many times during the period.
Electricity prices benefit from the reduction in the growth rate, the market share of electricity has increased significantly, and wait for the subsequent reform of electricity prices. The company’s 2019H1 on-grid electricity price +1.
56% to 414.
58 yuan / kWh.
In the second quarter of 2019, the growth rate of the power industry dropped from 16% to 13%. The benchmark electricity price of thermal power has not been profitable, so the tax-free electricity price 杭州桑拿 has increased by a quarter.
The proportion of market electricity increased greatly13.
17 pct to 48.
99%, but it is estimated that the discount rate is stable and the impact is controllable.
The National Development and Reform Commission promotes the full liberalization of electricity consumption and on-site trials in the operating industry. The market share of electricity may continue to expand, and the electricity price mechanism may shift to a “benchmark + floating” model, which more accurately reflects the power supply and demand and generation costs.
Looking forward to the subsequent decline in coal prices, driving performance to continue to repair We believe that macroeconomic pressure and the strengthening of ultra-high pressure on clean energy delivery will drive coastal coal demand weaker.
The release of high-quality production capacity and the cost savings of imported coal will also optimize the supply environment for thermal coal, driving long-term declines in thermal coal prices.
Thermal power companies are expected to save coal costs and effectively hedge against the pressure of increasing power generation. Investment suggestion: Maintain “overweight” rating. We fine-tune the company’s profit forecast for 2019-2021 by +0% /-1% /-2% to 28.
45 ppm, corresponding to a dynamic PE of 14/11 / 10x, and the company’s current PB is 0.
93x, at a historically low level, maintaining the “overweight” rating.
Risk Warning: Electricity demand falls short of expectations, coal prices fall below expectations, electricity prices fall sharply