A-share subscription | State Power Investment Corporation (600930.SH) starts subscription, ranked as one of the largest new energy companies in China.

On July 7, HuaDe XinNeng (600930.SH) started its IPO with an issue price of 3.18 yuan per share, and a subscription limit of 1.4905 million shares, with a P/E ratio of 15.28 times, listed on the Shenzhen Stock Exchange, with CICC and Huatai as its sponsors. According to the prospectus, the company is the only platform for the final integration of China HuaDe wind power generation and CECEP Solar Energy power generation as its main new energy business. The company's main business is the development, investment, and operation of wind power generation and CECEP Solar Energy-based new energy projects. In addition to providing electricity products, the company actively fulfills social responsibilities and is committed to promoting economic development, assisting in rural revitalization, participating in desert greening and other environmental actions, achieving a positive social impact, and integrating carbon peaking, carbon neutrality goals, and the overall sustainable development of society into the company's long-term business development goals. The company's main product is electricity, which is one of the world's important energy sources that uses electricity as a power source, converting primary energy from nature into electricity through power generation devices, and supplying it to various users through transmission, transformation, and distribution. New energy power generation belongs to a capital-intensive industry, with high barriers to entry, requiring companies to have strong financial strength as well as continuous project development, construction, and operational capabilities, making large state-owned enterprises and state-owned enterprises have a stronger competitive advantage. In recent years, the government has enacted various policies to support the healthy development of the new energy industry, leading to rapid capital entry, greatly promoting the diversified development of the power generation industry. In the field of new energy power generation, after years of mergers and acquisitions and self-construction, the five major power generation groups (Huaneng Group, Datang Group, National Energy Group, China HuaDe, and State Power Investment Corporation) remain the main force in the first echelon, occupying about 40% of the market share; other state-owned comprehensive energy companies and private enterprises have entered the "rapid expansion period" along with the new energy industry. The company's main assets are located in all 31 provinces, municipalities and autonomous regions of the country, covering regions with abundant wind and solar resources and strong electricity consumption demand, making it one of the largest new energy companies in China. As of June 30, 2024, the company's controlled power generation project installed capacity was 54,026.5 MW, with wind power of 27,515.8 MW (5.89% market share), and CECEP Solar Energy power generation of 26,510.7 MW (3.71% market share). The company's wind power and CECEP Solar Energy power generation installed capacity and power generation scale are among the industry leaders. With the commissioning of ongoing projects and the acquisition of new project resources, the company will further increase its installed capacity, use more advanced equipment and technology, and consolidate its leading position in the domestic new energy industry. Financially, in the 2021 fiscal year, 2022 fiscal year, 2023 fiscal year, and January-June 2024, the company's operating income was approximately RMB 21.741 billion, RMB 24.673 billion, RMB 29.580 billion, and RMB 17.253 billion respectively; and the net profit for the same period was about RMB 7.866 billion, RMB 9.032 billion, RMB 10.138 billion, and RMB 6.553 billion respectively.