Datang Power(601991) 广发证券·2025-02-09 23:54Investment Rating - The report assigns a "Buy-A/Buy-H" rating to the company, with a current price of 2.77 CNY/1.38 HKD and a fair value of 3.35 CNY/1.68 HKD [3]. Core Insights - The company is expected to achieve a significant improvement in annual performance, with a projected net profit of 4.2 to 4.8 billion CNY for 2024, representing a year-on-year increase of 208% to 252% [8]. - The increase in profitability is attributed to a decline in fuel costs and improved profitability from thermal power generation, alongside better water inflow contributing to overall profits [8]. - The company anticipates stable earnings moving forward, with expectations for market performance to stabilize and recover [8]. - The projected net profits for 2024, 2025, and 2026 are 4.469 billion, 5.164 billion, and 5.789 billion CNY, respectively, with corresponding P/E ratios of 11.47, 9.93, and 8.85 [8]. Financial Summary - Revenue is projected to grow from 116.828 billion CNY in 2022 to 133.249 billion CNY by 2026, with growth rates of 12.8%, 4.8%, 3.7%, 1.7%, and 3.2% for the respective years [2]. - EBITDA is expected to increase from 17.325 billion CNY in 2022 to 30.733 billion CNY in 2026 [2]. - The company reported a net profit of -408 million CNY in 2022, turning to a profit of 1.365 billion CNY in 2023, and is projected to reach 5.789 billion CNY by 2026 [2]. - The return on equity (ROE) is expected to improve from -0.7% in 2022 to 6.9% in 2026 [2].