HPI(600011) 东吴证券·2024-02-04 16:00Investment Rating - The investment rating for Huaneng International is "Buy" (maintained) [1] Core Views - The company reported a net profit attributable to shareholders of 8-9 billion yuan for 2023, marking a turnaround from losses in 2022. However, Q4 2023 showed a net loss of 4.56-3.56 billion yuan, which is a deterioration compared to Q4 2022's loss of 3.45 billion yuan [3] - The company's performance in Q4 was impacted by impairment losses and rising coal prices. The average price of thermal coal at Qinhuangdao Port was 921 yuan/ton as of December 29, 2023, down 21.85% year-on-year. The company is expected to see a slight decrease in impairment risks in 2024 [3][4] - The forecast for 2024 indicates that the long-term electricity price contracts will likely see a slight decline of 1-5% in most regions except Guangdong, with the market's pessimistic expectations for electricity prices having largely dissipated since July 2023 [3][4] Summary by Sections Earnings Forecast and Valuation - Total revenue is projected to be 262.705 billion yuan in 2023, with a year-on-year growth of 6.48%. The net profit attributable to shareholders is expected to be 8.601 billion yuan, a significant increase of 216.43% compared to 2022. The EPS for 2023 is estimated at 0.55 yuan, with a P/E ratio of 15.81 [2][4] - For 2024, the total revenue is forecasted at 264.303 billion yuan, with a slight growth of 0.61%. The net profit is expected to rise to 11.933 billion yuan, reflecting a growth of 38.74% year-on-year, and the EPS is projected to be 0.76 yuan with a P/E ratio of 11.39 [2][4] Market Data - The closing price of Huaneng International is 8.66 yuan, with a market capitalization of approximately 135.945 billion yuan. The stock has a price-to-book ratio of 2.35 [5][6] Financial Data - The company has a total asset value of 554.562 billion yuan and a debt-to-asset ratio of 70.02%. The net asset value per share is 3.68 yuan [6][8]