SHANGHAI ENERGY(SH:600508) ZHONGTAI SECURITIES·2024-08-11 05:30Investment Rating - The report maintains an "Invest Buy" rating for the company [1] Core Views - The company is focusing on high growth in its main business while deepening its green energy transformation [1][4] - The coal business has significant growth potential, with expected production capacity increases and new projects in the pipeline [25][27] - The integration of thermal and green energy development is promising, with substantial growth in electricity generation [29][31] Summary by Sections 1. Main Business and New Energy Development - The company is primarily coal-based but is exploring new energy development, leveraging its advantageous geographical location and existing resources [4][9] - It has a complete coal-electricity-aluminum transportation integrated industrial chain, with a current coal production capacity of 9.09 million tons per year [4][25] - The company is actively pursuing transformation, utilizing resources from mining subsidence areas for solar energy projects [4][29] 2. Growth Potential in Coal Business - The company has significant coal reserves and is expanding its production capacity, with new mines expected to come online soon [25][27] - The Xinjiang mining area is projected to increase the company's coal production capacity by 23.39%, potentially exceeding 10 million tons in sales [4][25] - Long-term projects, such as the Tangjiahe coal mine and the Nanchuanhe coal mine, are in the approval stage, indicating further growth potential [27] 3. Integration of Thermal and Green Energy - The company has a total thermal power capacity of 820MW and is expanding its renewable energy projects, including a solar power station with a capacity of 132MW [29][31] - In 2023, the company achieved a 24.47% year-on-year increase in electricity generation, highlighting the effectiveness of its integrated energy strategy [29][31] 4. Profit Forecast and Valuation - The company is expected to generate revenues of 113.09 billion, 117.52 billion, and 129.12 billion yuan from 2024 to 2026, with corresponding net profits of 8.02 billion, 8.87 billion, and 10.41 billion yuan [1][6] - The company has a low price-to-book ratio of 0.7, indicating undervaluation and potential for valuation recovery [5][6]