China Nuclear Power (601985): Rapid increase in power generation in the first quarter, convertible bonds raised funds to support project construction

Announcement points: The company recently announced the power generation situation in the first quarter and realized power generation of 312.

0.8 billion degrees, an 上海夜网论坛 increase of 25 over the same period last year.


In addition, the company’s convertible bond issuance is coming to an end. If the fundraising is successfully completed, it will support the construction of subsequent nuclear power projects.

  Investment points The power generation volume increased rapidly in the first quarter, but some units are worried about the utilization hours of the company in the first quarter of 2019.

0.8 billion degrees, an increase of 25 over the same period last year.

12%. From the perspective of structure, the commissioning of new units at Sanmen and Tianwan and the increase of utilization hours of Changjiang Nuclear Power contributed the major increase.

However, from the perspective of the utilization hours of the segmented generators, the utilization hours of the two units of Sanmen Nuclear Power may be 1016h, which is significantly lower than the utilization hours of Qinshan Nuclear Power in the same Zhejiang area of about 2000. Based on this, we judge SanmenSome units may be overhauled, or may affect the quarterly profitability to a certain extent.

The issuance of convertible bonds is coming to an end. The fundraising is completed to complete the construction of the initial nuclear power project. In combination with the company’s convertible bond issuance progress, we expect the company’s convertible bond issuance to be completed soon.Construction of Unit / 6 and Tianwan Unit 5/6.

According to the announcement of the company’s headquarters, Fuqing Unit 5/6 and Tianwan Unit 5/6 may be put into commercial operation in 2020 and 2021, respectively, when the company’s revenue and profit volume will reach a new level.

Profit forecast and estimation We expect that the company will achieve a net profit of 47 in 2018-2020.

63, 59.

33, 61.

90 ppm, a five-year increase of 5.

91%, 24.

54%, 4.

33%, EPS is 0.

31, 0.

38, 0.

40 yuan / share, corresponding to 20.

32 times, 16.

6 times, 15.

8 times P / E.

Maintain the “overweight” rating.

Risk warning: Nuclear power plant construction may not meet expectations; new nuclear power technology advancement may not meet expectations.