China Resources Power Holdings Company (836) H1 2024 earnings summary

Executive summary

• Net profit for H1 2024 rose 38.9% year-over-year to HK$9,363 million, with basic EPS at HK$1.95 and an interim dividend of HK$0.455 per share declared.

• Turnover was HK$51,120 million, down 0.7% year-over-year in HKD terms but up 2.2% in RMB terms, mainly due to lower tariffs despite higher generation and heat sales.

• Operating profit increased 26.4% to HK$13,266 million, driven by lower coal costs, new project contributions, and a HK$876 million bargain purchase gain.

• Operational generation capacity reached 80,314 MW, with attributable capacity at 62,758 MW as of 30 June 2024, of which 39.3% is from wind, photovoltaic, and hydro power, up 1.5 percentage points from end-2023.

• Net generation volume rose 6.2% year-over-year to 98,239,596 MWh, with significant growth in photovoltaic output (+204.9%).

Financial highlights

• Net profit attributable to owners: HK$9,363 million (up 38.9% year-over-year).

• Operating profit: HK$13,266 million (up 26.4% year-over-year).

• Interim dividend: HK$0.455 per share (up from HK$0.328 per share in H1 2023).

• Core business profit: HK$8,271 million (up from HK$6,680 million in H1 2023).

• EBITDA interest coverage improved to 8.6x from 7.0x a year ago.

Outlook and guidance

• Targeting 10,000 MW of new wind and photovoltaic grid connections in 2024, with most to be completed in the second half.

• Aims for renewable energy to exceed 50% of installed capacity by end-2025.

• 2024 cash capital expenditure expected at HK$59,900 million, with HK$44,600 million for wind and photovoltaic projects.

• Focus on carbon emission reduction, smart energy storage, and integrated energy services.