2023-07-27-安永_中国_-中国上市发电公司2022年回顾及未来展望_62页_10mb

China Listed Power Generating Companies 2022 Review and Future Outlook Summary

Overview

This report provides a comprehensive overview of China's listed power generating companies in 2022 and their future outlook, covering operational performance, financial metrics, market dynamics, and policy impacts.

Revenue Growth and Profit Efficiency

• In 2022, listed power companies achieved a combined revenue of RMB 1605.8 billion, representing a 10.7% year-on-10.6% year-on-year growth. Fossil energy companies saw the highest revenue growth at 12%, primarily due to higher electricity prices, while renewable energy companies experienced a revenue decline of 3.8%.
• Profitability showed a significant improvement, with total profits reaching RMB 172.5 billion, a 57.0% increase. Fossil energy companies saw profit margins improve for most companies, while renewable energy companies' performance was mixed.

Power Asset Growth

• By the end of 2022, total installed capacity reached 737,872 MW, a 5.0% increase from 2021. Fossil energy accounted for 67.1% of the total capacity, while renewable sources grew by 11.4%.
• Capital expenditure was RMB 274.1 billion, a 15.8% decrease, reflecting strategic investments in renewable energy and nuclear projects.

Consumption and Hours

• National electricity generation reached 8.85 trillion kWh, a 6.47% increase. Renewable energy generation grew by 11.1% to 33.5% of total generation.
• Average system utilization hours decreased 2.3%, with significant variations across sectors. Fossil energy companies saw a 1.4% decrease, while renewable energy companies experienced a 6.1% decline.

Electricity Price Trends

• Average electricity price nationwide was 398 Yuan/MWh, up 5.9%. Fossil energy companies saw a 20.0% increase, while renewable energy companies faced downward pressure due to policy changes and increased competition.
• Net revenue retention cycles are improving, especially for renewable energy companies, with increased use of financial instruments like asset-backed securities.

Cost Management and Efficiency

• Fuel costs stabilized after 2021, reducing the degree of freedom per kilowatt-hour by 8.9%. Power companies improved operational efficiency through technological upgrades and better resource management.
• Fuel consumption per kilowatt-hour continued to decline, reflecting ongoing efficiency improvements.

Capital Structure and Borrowing

• Average debt-to-asset ratio dropped to 60.8%, a 0.9 percentage point decrease. Fossil energy companies saw an increase, while renewable and hydropower companies improved their leverage positions.
• Average borrowing costs reached 4.2%, a decrease of 0.2 percentage points, reflecting favorable interest rate environments.

Capital Market Dynamics

• Market valuations saw mixed results, with most companies experiencing a decline in price-to-earnings ratio. Fossil energy companies showed resilience, while renewable energy companies faced greater pressure.
• Dividend yields remained attractive, reflecting board commitment to shareholder returns, with fossil energy companies distributing significant portions of their profits.

Carbon Emissions Trading

• The national carbon trading market continued operations in 2022, with total turnover reaching 230 million tons of CO2 equivalent and cumulative proceeds exceeding RMB 10.4 billion.
• In preparation for longer-term goals, China is aligning its "dual control" system from energy consumption to carbon emissions.

Short-Term Outlook

• 2023 is expected to be a crucial year for the power sector, with several policies and strategies potentially driving significant changes.
• The National Carbon Market's influence will continue to grow, impacting corporate strategies and investment decisions.
• The switch to cleaner energy sources remains a priority, and regulatory frameworks for sustainable development will further shape the sector's direction.

中国的发电行业在2022年实现了稳定的经济增长,面临复杂多变的经营环境,同时也迎来了新的发展机遇。在报告期内,上市公司整体保持良好发展态势,业绩稳健增长,资产结构持续优化。未来,后疫情时代的电力发展、碳排放交易的深入、以及可持续披露准则的应用,都将为发电行业带来新的机遇与挑战。
However, there are still risks to consider, including geopolitical tensions, energy security, and climate change uncertainties. Overall, the future looks promising for China's power sector, with substantial opportunities for innovation and sustainability-driven growth.