DTR's total power generation in 8M21 increased 6.9% YoY to 1,382 GWh.
Estimated wind utilisation hours for the month was down 13.7% YoY to 112 hours, while accumulated wind utilisation hours for 1-8M21 was estimated to be 1,481 hours (up 9.2% YoY). Solar power generation during the same period surged 239.6% YoY.
The Company's 1H21 net profit attributable to owners of the parent rose 42.3% YoY to RMB1,412 mn. DTR's 1H21 results were in line our expectation after taking into account the negative impacts from asset impairment. The Company's revenue increased 31.8% YoY boosted by the incremental effect from new capacity as well as solid wind resources. Excluding the impairment provisions of RMB603 mn in 1H21, the increase in other major operating expenses was basically in accordance with capacity growth.
Maintain "Accumulate" rating while raise TP to HK$3.75 for DTR. Given the updated capacity assumptions, as well as several adjustments in the Company's operating and financing expense estimates, we have revised DTR's 2021/ 2022/ 2023 EPS forecasts to RMB0.213/ RMB0.235/ RMB0.278, respectively. Looking ahead, the upside momentum for the Company's total output is likely to persist in the 4th quarter. With no further impairment provisions expected in the second half, the negative impacts from asset write down on DTR's full-year earnings may be limited. From a medium- to long-term perspective, the Company is to achieve stable capacity growth given the context of domestic carbon neutrality and emissions peak. We believe that the Company's long-term fundamental growth logic remains intact. We further raise TP from HK$2.75 to HK$3.75 for DTR; current TP represents 14.7x/ 13.3x/ 11.3x 2021/ 2022/ 2023 PER.