Shenergy(SH:600642) Tebon Securities·2024-08-20 12:13Investment Rating - The report gives a "Buy" investment rating for the company [1]. Core Views - The company is a leading power utility in Shanghai, with stable profitability and attractive dividends. It is actively transitioning towards renewable energy, which is expected to drive long-term growth [4][5]. Summary by Sections Company Overview - The company is a comprehensive energy enterprise under the Shenergy Group, and it is the first listed company in China's power energy sector. As of the end of 2023, the company had a controlled installed capacity of 16.9471 million kilowatts, a year-on-year increase of 5.17% [15][19]. Financial Performance - In 2023, the company achieved an operating revenue of 29.142 billion yuan, a year-on-year increase of 3.36%, and a net profit attributable to shareholders of 3.459 billion yuan, a significant increase of 219.52%. The cash dividend reached 1.958 billion yuan, resulting in a dividend yield of 6.2% [4][33][43]. Power Generation and Capacity - The company has a diversified power generation portfolio, with coal power accounting for 49.57% of its capacity, gas power 20.21%, and renewable energy (wind and solar) 30.22%. The installed capacity of renewable energy increased by 19.43% year-on-year [4][21][27]. Market Conditions - The overall stability of coal and electricity prices has improved profitability in thermal power. The average on-grid electricity price reached 0.52 yuan per kilowatt-hour in 2023, a year-on-year increase of 2.35% [4][7][36]. Future Outlook - The company is expected to continue its growth trajectory, with projected revenues of 29.18 billion yuan, 29.64 billion yuan, and 30.198 billion yuan for 2024, 2025, and 2026, respectively. The net profit is expected to grow at rates of 16.4%, 8.1%, and 5.1% during the same period [5][36].