26 Aug 2024

CNE’s 1H24 revenue was up by 31.7% YoY to Rmb1,753m, mainly due to a 14.1% YoY increase in power sales, which accounted for 77.8% of total revenue (1H23: 80.2%), and also a 187% YoY increase in other revenue to Rmb389m, including a Rmb303m sales of energy storage system equipment which was a new revenue driver for this year (1H23: nil). Revenue from wind power rose by 16.3% YoY to Rmb1,176m, mainly driven by the increase in capacity (+8.7% YoY to 3,467MW). Utilization hours suffered from a 9.8% YoY decline to 1,220 hours, mainly due to regional severe weather and intensified power curtailment, but yet still above China’s average of 1,134 hours. Curtailment increased from 4.0% in 1H23 to 9.7% in 1H24, while average tariff was down from 0.4054 Rmb/kWh in 1H23 to 0.3838 Rmb/kWh in 1H24 as lower-tariff grid parity projects increased to 64.8% (1H23: 61%).

Revenue from solar was up by 2.0% YoY to Rmb188m as capacity increased by 29.3% YoY to 583MW during the period. Avg solar utilization hrs was down by 9.8% YoY to 659 hrs and curtailment rose by 13.2ppt YoY to 19.5%. Avg solar tariff was Rmb0.4714/kWh, down from Rmb0.5362/kWh last year. Wind/solar accounted for 86%/14% of 1H24 power sales. EPC was down by 61% YoY while design and consultancy services rose by 145% YoY and accounted for 2.3%/2.0% of total revenue. 1H24 GPM was up down 13.0ppt YoY to 48.6% as energy storage system equipment has a lower GPM. Admin cost lowered by 4% YoY on better cost control. As a result, NP was up by 1.0% YoY to Rmb501m.

CROSBY Research – Concord New Energy (182 HK/BUY): Utilization hours declined YoY in 1H24