Guodian Group's 2012 Report Review: No shortage of growth valuations

China Guodian Group’s mid-year report commented: There was no lack of growth, and the obvious advantage of valuation was that the consolidated installed capacity reached 32,135,400 kilowatts, of which thermal power was 22.912 million kilowatts, hydropower was 7,247,600 kilowatts, wind power was 1,808,800 kilowatts, and photovoltaic power was 95,000 kilowatts; 734.60 billion kilowatt-hours of on-grid electricity was 69.223 billion kwh, up 3.25% and 3.27% year-on-year, respectively. The increase in power generation was mainly due to the contribution of Jiangsu Newcastle; the company's average utilization hours of power generation equipment completed 2404 hours in the first half of the year. Including thermal power 2776 hours, hydropower 1534 hours, wind power 1138 hours, photovoltaic 817 hours.

The gross margin of the electricity business increased by 2.79 percentage points. From January to June 2012, the company achieved operating revenue of 26.7 billion yuan, an increase of 11.53% over the same period of last year, and a net profit of 1.201 billion yuan, a year-on-year increase of 16%. The company's affiliated and holding thermal power generation enterprises consumed 19,977,000 tons of standard coal, and the standard coal price was About 675 yuan / ton, compared with the same period last year increased by 36 yuan / ton, but due to the company's thermal power unit on-grid tariff increased by about 8%, the company's gross margin increased by 2.79 percentage points. In July, the company's standard coal price was 623 yuan/ton, and it is expected that the increase in coal prices will be reflected in the 3 quarterly reports.

In the first half of this year, the approved installed capacity was 2.845 million kilowatts. In the first half of 2012, the company approved a total of 2.845 million kilowatts of installed capacity, including 660,000 kilowatts of Ningdong Thermal Power Plant and 700,000 kilowatts of Wuzhong Thermal Power Plant in terms of thermal power, and 250,000 kilowatts of wind farms in Pingdingshan, Shanxi Province for wind power projects; The Dadu River Pillow Dam has a level of 720,000 kilowatts and a second level of 348,000 kilowatts of Shaping. There are 69,000 photovoltaic projects such as Shichengzi in Xinjiang, Minqin in Gansu Province, Tuyouqi in Inner Mongolia, and Geermu II in Qinghai.

At present, the valuation of the company is lower than the average level of the power industry. The reserve project can ensure that the growth of the company is higher than the average level of the industry. The improvement in the performance of coal prices is expected to be reflected in the third quarter.

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