The brilliant performance of listed power companies is expected to run through the entire year

As of July 22, the first middle-fired thermal power and hydropower listed companies have appeared one after another. Both Jiantou Energy and Hunan Development have achieved an increase in operating income and operating profit. The net profit attributable to listed companies has increased by 330% and 27% respectively from the same period of last year. %.

The brilliant reports of the two companies are just a “microcosm” of the mid-term transcripts of power companies. According to statistics, 28 power listed companies have issued interim results announcements. Among them, 13 companies are increasing in advance, 2 companies are expected to increase slightly, 9 companies are expected to turn losses, 3 companies continue to lose money, and 1 companies are reduced. On the whole, the pre-joyed company accounted for 86% of the mid-year report results. Another five companies released earnings reports, of which three had a substantial increase in net profit.

The relevant analysis believes that under the background of the continuing coal price slump and relatively abundant supply of water, the booming of the electric power industry is expected. The brilliant performance of the electric power listed companies is expected to run through the whole year of 2013.

"Graduation report" is gratifying

Judging from the power companies that have not yet announced the semi-annual report, most of the interim results have increased. According to statistics, 28 power listed companies have issued interim results announcements, and 13 companies such as Guodian Power have achieved pre-increase. Huadian Power International has the largest pre-increment.

Huadian International issued a pre-addition announcement on the 19th. After preliminary calculations by the company's financial department, the net profit attributable to shareholders of the listed company in the first half of 2013 was approximately 2.7 billion yuan, an increase of approximately 510% to 530% compared with the same period of last year. The company stated that due to the year-on-year drop in thermal coal prices, the company’s fuel costs decreased year-on-year, resulting in a significant improvement in profitability.

In addition, Gansu Dianchuan and Chuantiao Energy expect that the results of the interim report will increase slightly, and nine companies such as Laurel Power and Dalian Thermal Power are expected to turn losses into losses.

Only Ningbo Thermal Power Co., Ltd. is expected to reduce its performance. The company announced on the 19th that the net profit for the first half of the year was approximately RMB 41.66 million, which was a 60% decrease from the same period of last year. The reason for the company's pre-planned fall was that the three-year replacement power income since 2010 was due to expire at the end of 2012. Instead of power revenue. In addition, due to the downturn in the securities secondary market, the company’s holding of trading financial assets caused a significant year-on-year decrease in fair value gains.

From the perspective of the power companies that 5 companies released performance reports, the net profit of Leshan Electric and Qijiang hydropower declined, and the other three companies, including star power, all said that the net profit would achieve a substantial increase.

Benefit from low coal prices and high precipitation

One of the key motivations for the promising report of thermal power listed companies is the continuous reduction in the cost of coal. On July 22, the latest coal coal production base in Taiyuan, Shanxi Province, was recently closed at 90.72 points, down by another 0.2%, and has not risen since the index was released. The latest round of Bohai steam coal price index also fell sharply. The comprehensive average price of 5,500 kcal thermal coal closed at RMB 583/ton, which was a year-on-year decrease of RMB 9/ton, a new five-year low. In particular, the sharp price cuts of Shenhua and China Coal, the two major wind-powered coal companies, have aggravated the sentiment of the coal market. In this context, the power companies in the price negotiations with coal companies, voice power has increased significantly. The gradual lowering of costs has reduced the burden on power companies, and several companies have indicated that the increase in performance is related to the decline in coal prices.

The abundant supply of water is an important reason for the growth of hydropower companies. Xichang Electric Power Express reported that the company's net profit from January to June was 16.92 million yuan, up 165% over the same period of last year. The company explained that during the reporting period, the river had a good amount of water, the company stepped up power dispatch, increased self-generated power, and purchased The cost of electricity dropped and operating profit increased. In the same period of last year, affected by the severe arid climate, the company’s operating profit dropped sharply. Compared with a loss of 25.5 million yuan in the first half of 2012, Wuyuan Power expects its interim results for 2013 to be between 32 million and 37 million yuan, an increase of 245% over the same period of last year. The company explained that on the one hand, the reservoir water level is higher, and the company’s power station generates electricity. The situation is better. On the other hand, affected by the interest rate cut by the central bank, the company's financial expenses for the period from January to June 2013 decreased compared to the same period of last year, resulting in higher profitability.

Hours of electricity generation is an important indicator of the efficiency of the power industry. Fuling Power said in its mid-term report that the sales of electricity from January to June totaled 924,442,200 kilowatt hours, an increase of 16.85% over the same period last year.

According to analysts from the State Grid Corporation of China, the power industry faces two major challenges in the second half of the year. In addition to the slowdown in electricity consumption growth, the electricity price reduction is expected to increase. However, industry analysts believe that the continued decline in coal prices and the certainty of incoming water will continue to maintain optimism in the performance of power companies and contribute to the continuous improvement of the balance sheet. Even assuming that the price of electricity is reduced by 3% from December this year, the vast majority of power companies still have attractive valuations, and the year-on-year high growth of their performance is still relatively certain.