Datang Power(601991) Tebon Securities·2024-08-15 13:00Investment Rating - The report initiates coverage on Datang Power (601991.SH) with a "Buy" rating [2][5]. Core Views - Datang Power is positioned as a leading player in the thermal power sector, actively transitioning towards clean energy, with a total installed capacity of 73.29 million kilowatts as of the end of 2023, where clean energy accounts for over 37% of its total capacity [5][11]. - The recovery of the thermal power industry, optimization of electricity pricing structures, and the potential for value reassessment are highlighted as key factors for the company's growth [5][37]. - The company is expected to see significant revenue growth driven by both thermal and renewable energy segments, with projected revenues of CNY 128.17 billion, CNY 133.03 billion, and CNY 139.15 billion from 2024 to 2026, respectively [5][6]. Summary by Sections 1. Thermal Power Development - Datang Power has a solid foundation in thermal power, with a focus on developing clean energy simultaneously [11][16]. - The company has a significant share in the national thermal power market, with a coal-fired capacity of 45,624 MW, contributing to its primary revenue stream [16][19]. - The company has seen steady revenue growth, with a 4.8% increase in 2023, driven by higher electricity sales and prices [23][25]. 2. Industry Recovery and Pricing Optimization - The national thermal power installed capacity has shown steady growth, with coal power remaining a critical component of energy security [37]. - The report anticipates a downward trend in coal prices, which could enhance the profitability of thermal power operations [5][37]. - Capacity pricing adjustments are expected to contribute CNY 4.7 billion to CNY 5.1 billion in revenue for the company in 2024 [5][37]. 3. Transition to Clean Energy - Datang Power is rapidly expanding its renewable energy portfolio, with wind and solar projects significantly boosting overall profitability [5][11]. - The company has stable hydropower capacity, primarily located in the southwestern regions, which is expected to improve profitability due to favorable water conditions [5][11]. - The company holds a stake in Ningde Nuclear Power, which provides stable returns and contributes to its diversified energy mix [5][11]. 4. Financial Projections and Investment Recommendations - The report forecasts substantial growth in net profit, with projections of CNY 3.76 billion, CNY 4.25 billion, and CNY 4.80 billion for 2024 to 2026, reflecting a significant recovery from previous losses [5][6]. - The investment recommendation emphasizes the synergistic development of thermal and renewable energy, positioning Datang Power for high growth in the context of energy transition [5][6].