Nuclear power in China
Key institutions: Wells Fargo Fund, Industrial Securities Global, China Europe Fund, Hongde Fund
Survey Summary:
1. Q: What is the reason for the decline in the net profit of Sanmen Nuclear Power?
Answer: Sanmen Nuclear Power Co., Ltd. had a compensation for a main pump last year, and at the same time began to accrue spent fuel reprocessing fees, resulting in a decline in Sanmen's net profit for the current period.
2. Q: When is Fuqing Nuclear Power Unit 4 expected to be connected to the grid?
Answer: Fuqing Nuclear Power is promoting the relevant review work, and strives to complete minor repairs as soon as possible to achieve grid connection.
3. Q: What is the reason for the increase in net profit of Fuqing Nuclear Power in the first half of the year?
Answer: The electricity price of the Hualong unit of Fuqing Nuclear Power Plant was determined, and the difference with the previous tentative electricity price was recovered, resulting in an increase in revenue.
3. Q: Other items of non-operating income were 315 million last year and 12.85 million this year, what is the main reason for the change? What are the expectations for next year's pipeline review?
A: The main reason is that there was a compensation payment for the three main pumps last year. Regarding the review of reserve projects, the annual approval rhythm of the state is still about 8~10 units, and the company basically needs 4~6 units per year to meet the needs of national approval at any time.
4. Q: What should be the outlook for the economics of high-temperature gas-cooled reactors? In addition, how is the company's coastal nuclear power base project progressing? Will there be new breakthroughs in other provinces?
A: The economy of the high-temperature gas-cooled reactor demonstration project is low. However, the high-temperature and high-pressure steam generated by high-temperature gas-cooled reactors can be coupled with the petrochemical industry, which plays a good role in the green energy and low-carbon transformation of the industry, especially the chemical industry. From the perspective of heating and gas supply, the utilization rate of high-temperature gas-cooled reactors can be greatly improved, which has great support for the further improvement of economy. At present, the company is actively connecting with relevant national ministries and commissions to promote the establishment of more reasonable relevant standards and further improve the economy of high-temperature gas-cooled reactors. The coastal nuclear power base project is currently being planned, and there are 37 sites that have entered the planning, and it is expected that 3~5 sites will be included in the planning. China's nuclear power will ensure that 4~6 units per year have the approval conditions and sufficient resources.
5. Q: In terms of electricity prices, what is the current level of the proportion of electricity we are trading in various provinces in the market and the average electricity price relative to an approved electricity price?
A: In the first half of 2024, the amount of electricity traded in the nuclear power market will be 37.426 billion kWh, accounting for about 45.32% of the on-grid electricity; The market electricity price was 0.4177 yuan/kWh, down 0.0067 yuan, down 1.60% year-on-year. It is estimated that the market-based electricity will account for about 46.72% of the total electricity throughout the year. Thereinto:
9.213 billion kWh in Qinshan, accounting for 37.28% of Qinshan's on-grid electricity;
12.736 billion kWh in Jiangsu, accounting for 52.88% of Jiangsu's on-grid electricity;
Fujian 12.419 billion kWh, accounting for 60.20% of Fuqing's on-grid electricity;
3.059 billion kWh, accounting for 32.59% of the on-grid electricity of the three doors;
Except for Jiangsu Province, where the market-based electricity price has risen slightly, the rest of the provinces are basically settled according to the approved price.
It is expected that in the second half of the year, the market electricity price will remain high as a whole, and the market electricity will remain at about 46%, and there will be no major changes.
Brokerage Research Report:
Weixing New Materials
Key Institutions:
China Universal Fund: Wong Wo Ching
Ruiyuan Fund: Rong Zheyu
Survey Summary:
1. In the case of intensified market competition, is there any adjustment to the price system of the company's retail products?
Answer: The pricing of the company's products generally implements the principle of cost plus, except for the price of some products due to the sharp decline in raw material prices, the price system of most products in the retail business this year has basically remained stable.
2. Does the company's PPR products feel the impact of consumption downgrade?
Answer: As a hidden project in home decoration, PPR products are just needed products related to drinking water safety, which are closely related to personal health, and consumers pay more attention and attention to them, and are correspondingly less affected by consumption downgrades.
3. The revenue of other products in the first half of the year achieved a positive growth of 45.3%, how to break it down?
Answer: In the first half of 2024, the growth of operating income of other products is mainly as follows: first, Zhejiang Kerui Company consolidated more than 160 million revenue, and second, the steady growth of waterproof business.
4. What is the development of the company's overseas market?
Answer: At present, the company's overseas business is steadily deployed and promoted, including the construction of marketing network and the cultivation of international team, the promotion of brand internationalization and self-ownership, the layout of production bases, and the establishment of overseas technology research and development and investment platforms.
5. What is the company's capital expenditure in 2024?
Answer: It is estimated that the company's capital expenditure in 2024 will be about 300 million, which will be mainly used for the expansion of production bases, the addition and intelligent transformation of equipment, and the increase of production capacity of new businesses.
Brokerage Research Report:
China Railway Industry
Key institutions: Tianhong Fund, Bank of Communications Schroder Fund
Survey Summary:
1. The company's performance in the first half of 2024.
A: In the first half of 2024, under the severe and complex domestic and foreign market situation, China Railway Industry maintained a relatively stable development trend. The newly signed contract value was 26.664 billion yuan, of which the new overseas contract value was 1.796 billion yuan, a year-on-year increase of 10.14%; The operating income was 13.978 billion yuan, the net profit attributable to shareholders of the listed company was 934 million yuan, and the net profit attributable to the parent company was 892 million yuan, and the comprehensive gross profit margin was 18.79%, a year-on-year increase of 0.48 percentage points, of which the gross profit margin of the turnout business and the steel structure manufacturing and installation business was improved.
In terms of order contracting by various business segments, from January to June 2024, the tunnel construction equipment and related services business completed new contracts worth 6.15 billion yuan, of which 1.178 billion yuan were newly signed overseas contracts for shield machines/TBMs, a year-on-year increase of 37.98%; The newly signed contract value of turnout business was 4.388 billion yuan, a year-on-year increase of 4.18%, and the proportion of high-speed railway turnouts increased significantly; The new contract value of steel structure manufacturing and installation business was 12.333 billion yuan, and the new contract value of construction machinery and related services business was 1.75 billion yuan, a year-on-year increase of 17.27%.
In terms of revenue recognition of various business segments, from January to June 2024, the operating income of tunnel construction equipment and related services was 4.444 billion yuan, a year-on-year increase of 5.43%; The operating income of turnout business was 1.965 billion yuan, the operating income of steel structure manufacturing and installation business was 6.766 billion yuan, and the operating income of construction machinery and related services business was 308 million yuan.
2. In the first half of the year, the application and expansion of the company's products in overseas markets.
Answer: As the world's leading manufacturer of underground engineering equipment and rail transit equipment, China Railway Industry has obvious advantages in overseas markets, and its products such as shield machines/TBMs, railway turnouts, steel bridges, and special construction machinery have been distributed to more than 40 countries and regions on six continents around the world, especially as "China's business card", the production and sales of shield machines/TBM have ranked first in the world for 7 consecutive years, and it is the enterprise with the largest number of shield machines/TBMs, the highest market share and the strongest brand awareness exported to overseas in mainland China.
In the first half of 2024, the amount of new contracts signed by China Railway Industry's overseas business reached a new high, with a new overseas contract value of 1.796 billion yuan, a year-on-year increase of 10.14%; Among them, the tunnel construction equipment and related services business achieved a new contract value of 1.178 billion yuan, a year-on-year increase of 37.98%, and contracted orders for tunnel boring machines for railway, municipal and other projects in developed countries such as Western Europe and Northeast Asia, and further increased its market share in the developed country market and large-diameter tunnel boring machine applications; The turnout business achieved a new overseas contract value of 176 million yuan, and contracted railway turnout orders in Southeast Asia, East Africa and other regions overseas; The steel structure manufacturing and installation business achieved a new overseas contract value of 329 million yuan, and contracted orders for bridge steel structures and building steel structures in Southeast Asia, South Asia, East Africa and other regions overseas; The construction machinery and related services business achieved a new overseas contract value of 113 million yuan.
In the future, the company will continue to increase its efforts to develop overseas markets, strengthen close cooperation with large-scale and well-known international construction contractors, and continuously strengthen localized construction, further reduce the production cost of overseas projects, strengthen the management of projects in execution, improve management efficiency, and achieve better and faster development of overseas markets.
3. The market share and future prospects of the company's shield machine/TBM products in various fields.
A: As a pioneer and leader in the domestic tunnel boring machine industry, as of the end of June 2024, China Railway Industrial has ordered more than 1,700 shield machines/TBMs, of which more than 1,600 have been shipped, with a tunnel tunneling mileage of more than 5,000 kilometers. The production and sales volume of tunnel boring machines has been the first in China for 12 consecutive years and the first in the world for 7 consecutive years. At present, the market share in the field of domestic water conservancy and hydropower engineering construction is more than 60%, of which the market share in the field of pumped storage power station is about 85%; The market share in the field of mine construction is more than 40%. The company has an annual production capacity of 300 shield machines/TBMs, 380 sets of tunnel special equipment, and has a manufacturing capacity of more than 50 specifications of core structural parts such as a full range of cutterheads, ultra-large diameter shields, full range of drive boxes, head frames, TBM shields, TBM propulsion systems, mining TBMs, shaft TBMs, and screw conveyors. The company closely follows the "Belt and Road" initiative, and its products have been exported to more than 30 countries and regions.
Looking forward to the coming period, in terms of the domestic market, the company will firmly seize the policy opportunities such as the state to increase the construction of major water conservancy and hydropower projects, continue to promote the construction of key railway projects, and enhance the ability to guarantee strategic mineral resources, and further increase market development efforts in the fields of water conservancy and hydropower, railways, and mines. In terms of overseas markets, the company's shield machine/TBM products have been applied to overseas subways, municipal, railways, highways and other fields, especially in recent years, major breakthroughs have been made in developed countries in Europe and large-diameter shield machines/TBMs. In the future, on the basis of further stabilizing the traditional advantageous markets such as Europe and Southeast Asia, the company will continue to increase its expansion into markets such as the Middle East, Australia and the Americas to further increase its market share.
Brokerage Research Report: