XINJI ENERGY(SH:601918) Minsheng Securities·2024-10-25 17:00Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Views - The company has seen a rise in profitability due to the commercial operation of new power plants, with a significant increase in electricity generation contributing to a quarter-on-quarter growth in net profit [1]. - The company aims for a total profit target of 4 billion yuan by 2025, supported by the orderly progress of new power plant projects [1]. - The coal-electricity integrated business model is expected to stabilize profitability at a high level and drive valuation improvements [1]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 9.189 billion yuan, a year-on-year decrease of 5.19%, and a net profit attributable to shareholders of 1.824 billion yuan, down 5.01% year-on-year [1]. - In Q3 2024, the company achieved a net profit of 649 million yuan, a year-on-year increase of 5.86% and a quarter-on-quarter increase of 12.16% [1]. - The gross profit margin for Q3 2024 was 42.39%, up 1.01 percentage points year-on-year and 0.92 percentage points quarter-on-quarter [1]. - The company’s coal production in Q3 2024 was 5.1981 million tons, a year-on-year decrease of 3.09% and a quarter-on-quarter decrease of 3.11% [1]. - The company’s electricity generation in Q3 2024 was 3.994 billion kWh, a year-on-year increase of 20.53% and a quarter-on-quarter increase of 86.19% [1]. Future Projections - The company forecasts net profits of 2.423 billion yuan, 2.614 billion yuan, and 3.156 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.94, 1.01, and 1.22 yuan [2][4]. - The projected PE ratios for 2024, 2025, and 2026 are 9, 8, and 7 times respectively [2][4].