浙能电力：省属火电龙头，核电压舱，拔估首选

Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for investment [2]. Core Views - The company is a leading thermal power operator in Zhejiang Province, with a diversified energy portfolio and a strong recovery in profitability due to falling coal prices [1][2]. - The company has a solid financial position, with high dividends compared to industry peers, and is expected to benefit from a decline in coal prices, leading to significant earnings recovery [2][24]. Summary by Sections 1. Company Overview - The company is the only publicly listed thermal power company under the Zhejiang Energy Group, managing a total installed capacity of 35.17 million kilowatts, with coal power accounting for 88% and gas power for 11% [1][12]. - In 2023, the company achieved total revenue of 95.98 billion yuan, a year-on-year increase of 19.7%, with a three-year CAGR of 22.9% from 2020 to 2023 [1][18]. 2. Thermal Power Business - The company holds a significant market share in Zhejiang, with nearly half of the province's regulated coal power capacity [1][12]. - The company benefits from a tight supply-demand balance in the region, which supports both power generation and pricing [1][23]. - The company has a low long-term coal contract coverage, allowing it to benefit from falling market coal prices, which is expected to enhance profitability [1][23]. 3. Nuclear Power Investments - The company has established deep collaborations in the nuclear power sector, with nearly 2.5 million kilowatts of nuclear power equity installed capacity, providing stable investment returns [1][2][21]. 4. Expansion into New Energy - The acquisition of Zhonglai Co., a solar manufacturing company, marks the company's strategic move into the photovoltaic sector, which is expected to contribute to revenue growth despite increasing competition [2][21][22]. - In 2023, Zhonglai Co. achieved a net profit of 530 million yuan, a year-on-year increase of 31% [2]. 5. Financial Projections - The company is projected to achieve revenues of 103.87 billion yuan, 108.44 billion yuan, and 109.02 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 8.77 billion yuan, 9.63 billion yuan, and 10.81 billion yuan [2][6]. - The expected EPS for the same years is 0.65 yuan, 0.72 yuan, and 0.81 yuan, with P/E ratios of 10.5, 9.6, and 8.5, respectively, indicating a favorable valuation compared to peers [2][6].