\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 011 Huaneng Power International Inc(600011) )
Event:
Huaneng Power International Inc(600011) released the first quarterly report of 2022: the company achieved a revenue of 65.25 billion yuan, a year-on-year increase of 30.54%; The net profit attributable to the parent company was -956 million yuan, compared with 3.127 billion yuan in the same period of last year (before adjustment, the same below); The net profit attributable to the parent company after deducting non-profit was -1.415 billion yuan, compared with 2.864 billion yuan in the same period of last year.
Key investment points:
Both volume and price rose, and the company's revenue increased by 30.5% year-on-year.
1) capacity: the on grid power of 2022q1 company increased by 2.42% year-on-year, of which the wind power and photovoltaic power generation increased rapidly. The on grid power of coal turbine / wind power / photovoltaic was 93.37/62.6/1.09 billion kwh respectively, with a year-on-year increase of 1.4% / 17.9% / 59.0%. By the end of March 2022, the company's equity installed capacity was 108.59gw, an increase of 2.31gw compared with the end of last year, of which wind power / photovoltaic increased by 1.41/0.85gw.
2) price: in 2022q1, the average on grid price of the company increased by 19.47% year-on-year to 0.502 yuan / kWh, and the kWh income was 0.606 yuan / kWh, an increase of 8.8% month on month and 27.6% year-on-year. The rise of average on grid electricity price is mainly due to the rise of coal-fired electricity price under the background of electricity price reform; And the proportion of market-oriented trading electricity increased by 31.6pct to 88.9% year-on-year.
The loss narrowed significantly month on month, and it is optimistic that the business will be further improved in the second quarter. In 2022q1, the net profit attributable to the parent company was -956 million yuan, which was significantly improved compared with -11.047 / - 3.499 billion yuan in 2021q4 / 2021q3; The net profit per kilowatt hour was -0.009 yuan / kWh, an increase of 0.094 yuan / kWh compared with 2021q4, and 0.03 yuan / kwh in the same period last year. From the perspective of gross profit, the coal-fired and gas turbine power generation businesses have basically achieved profit and loss balance. In 2022q1, the company realized a gross profit of 2.385 billion yuan and - 11.91 billion yuan in 2021q4; Roughly assuming that the gross profit of kwh of wind power, photovoltaic and hydropower businesses in 2022q1 is equal to that in 2021, the total gross profit of the three businesses is 2.395 billion yuan, and the total gross profit of coal and gas turbine businesses is - 10 million yuan. Under the strong regulatory constraints of coal price superimposed by increasing coal production and supply, we are optimistic about the subsequent decline of coal price + the improvement of long-term agreement performance rate, and the company's performance in the second quarter is expected to be further improved.
Profit forecast and investment rating: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 8.151/98.58/11.223 billion respectively, corresponding to 13.02/10.76/9.46 times of PE from 2022 to 2024, maintaining the "buy" rating.
Risk warning: policy promotion is not as expected; The new installed capacity is less than expected; Coal prices rose sharply; Electricity price reduction; Intensified industry competition, etc.
