Zhejiang Zheneng Electric Power (600023) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 40.16 billion, down 3.75% year-over-year; net profit attributable to shareholders rose 41.33% to RMB 3.93 billion.

• Operating cash flow reached RMB 5.33 billion, up 304.6% year-over-year, mainly due to lower coal costs.

• The company maintained its position as Zhejiang's largest power generator, with a diversified portfolio in thermal, gas, nuclear, and solar power.

• No interim dividend or capital increase from reserves was proposed for the half-year.

Financial highlights

• Gross margin improved as operating costs fell 8.48% year-over-year, outpacing the 3.75% revenue decline.

• Basic and diluted EPS were RMB 0.29, up 38.10% year-over-year; ROE rose to 5.68%.

• Net assets attributable to shareholders increased 1.86% to RMB 68.66 billion; total assets rose 2.64% to RMB 151.13 billion.

• Non-recurring gains (mainly asset disposals and government grants) contributed RMB 304.65 million to net profit.

Outlook and guidance

• National electricity demand is expected to grow 6.5% in 2024, with tight supply in Zhejiang and other regions during peak periods.

• The company will continue to focus on cost control, project execution, and green energy transition.