Huaneng International (600011): Performance is below expectations

Huaneng International (600011): Performance is below expectations

Matters: The company released its 2018 annual report, reporting a series of 1,698 operating incomes.

6.1 billion, an increase of 11 over the same period last year (restated).

04%; net profit attributable to shareholders of the company14.

USD 3.9 billion, a decrease of 17 from the same period last year (restated).


The company proposed to send 0.

10 yuan (including tax), 15 payable dividends.

7 billion yuan.

Ping An’s point of view: Fuel costs remain high, increasing revenue does not increase profits: As happened in our comments in the third quarterly report, the company’s performance did not meet expectations.

Increase in revenue by 11.

In the case of 0%, the net 西安耍耍网 profit attributable to the mother is replaced for the third consecutive year.

The unit fuel cost of the company’s electricity sales in 2018 was 236.

89 yuan / MWh, an increase of 4 per year.

85%, total fuel cost increased by 118 compared to the same period in 2017.

1.2 billion.

The growth rate of power generation in the fourth quarter was short-term, and the on-grid electricity price began to change: Q4 Company completed power generation of 1,037.

0.7 billion kWh, an annual increase of 3.

5%, a significant growth rate.

The average on-grid price for Q4 was 422.

75 yuan / MWh, an increase of 2 from the previous month.

0%, ten-year average 1.

5%, ending 7 consecutive quarters of positive growth since 1Q17.

Investment income did not increase significantly: in 2017 the company held 1 through disposal.

4杭州桑拿.4 billion shares of Yangtze Power received investment income14.

8 billion.

At the end of 2018, the joint venture Hong Kong Energy was converted into a subsidiary to confirm investment income11.

USD 3.3 billion, and the era of joint ventures will gradually realize profit recognition investment income2.

USD 1.3 billion, plus other long-term equity investments accounted for using the equity method, has gradually increased by 14.

07 trillion US dollars, maintaining investment income without significant growth.

Investment suggestion: Subject to high fuel costs, as well as poor performance of electricity and electricity prices in the fourth quarter, the company’s performance fell short of expectations.

Under the general trend of continuing to reduce electricity prices in 2019, we have lowered our profit forecast for the company based on the principle of prudence. It is expected that the EPS in 19/20 will be 0.


35 yuan (previous value was 0.


46), add 21-year EPS forecast value 0.

38 yuan, corresponding to the closing price of 19/20/21 PE on March 19 were 24.


6/18.0 times, maintaining the “neutral” level.

Risk warnings: 1. The on-grid electricity price drops; 2. The coal price rises; 3. The utilization hour drops.