JEP(000875) 天风证券·2024-08-04 11:30Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative return of over 20% within the next six months [6]. Core Views - The company's revenue for the first half of 2024 was 6.887 billion yuan, a year-on-year decrease of 9.79%, while the net profit attributable to shareholders increased by 22.03% to 1.095 billion yuan [1][3]. - The improvement in profitability is attributed to the decline in coal prices, which led to a 15.1% reduction in operating costs to 4.56 billion yuan [3]. - The company plans to distribute a cash dividend of 1.17 yuan per share for the first half of 2024, amounting to a total of 326 million yuan [4]. Financial Performance Summary - Revenue Breakdown: Coal power revenue decreased by 7.18%, while thermal product revenue increased by 28.07%. Wind and solar revenues grew by 3.29% and 1.13%, respectively [2]. - The net profit margin improved to 20.88%, an increase of 4.12 percentage points year-on-year [3]. - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 1.24 billion, 1.41 billion, and 1.59 billion yuan, respectively [5]. Financial Data and Valuation - The company's total assets are projected to grow from 76.75 billion yuan in 2023 to 82.30 billion yuan by 2026 [8]. - The price-to-earnings (P/E) ratio is expected to decrease from 15.45 in 2023 to 8.83 by 2026, indicating a more attractive valuation over time [5][8]. - The company’s return on equity (ROE) is projected to improve from 7.70% in 2023 to 10.77% by 2026 [8].