Datang Power(SH:601991) Guohai Securities·2024-02-03 16:00Investment Rating - The investment rating for Datang Power (601991) is "Buy" (maintained) [1][5] Core Views - The company is expected to turn a profit in 2023, with a projected net profit of approximately 1-1.5 billion yuan, compared to a loss in the previous year [3] - The company's performance in Q4 2023 is anticipated to decline year-on-year, primarily due to increased impairment losses and higher coal prices [4] - For 2024, the company's performance is expected to continue recovering, driven by a potential decrease in coal prices and the divestment of non-core assets [5] Summary by Sections Financial Performance - In 2023, the company is expected to achieve a net profit of 1.21 billion yuan, with a significant year-on-year growth rate of 395% [7] - The average on-grid electricity price for 2023 is projected to be 0.466 yuan/KWh, reflecting a 1.2% increase year-on-year [4] - The total electricity generated by the company in 2023 is estimated at 259.4 billion KWh, a 5.1% increase from the previous year [4] Market Position - As of February 2, 2024, the company's stock price is 2.35 yuan, with a market capitalization of approximately 43.49 billion yuan [4] - The company's performance relative to the CSI 300 index shows a decline of 6.0% over the past month and 17.8% over the past year [4] Future Outlook - The company is expected to benefit from a weaker demand for thermal coal in 2024, which may lead to improved profitability in thermal power generation [5] - The transition of the thermal power business model towards a revenue structure that includes generation income, capacity fees, and ancillary service income is anticipated to stabilize profitability and reshape valuation [5]