EBSCN·2024-03-20 16:00Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The company achieved a revenue of 254.4 billion yuan in 2023, a year-on-year increase of 3.11%, and a net profit attributable to shareholders of 8.446 billion yuan, marking a return to profitability [2][3] - The company plans to distribute a cash dividend of 0.20 yuan per share, with a payout ratio of 57% [2] - The profitability of coal power is improving, with a total coal power revenue of 188.8 billion yuan in 2023, up 2.55% year-on-year, despite a loss of 3 billion yuan in Q4 due to asset impairment [3] - The company is increasing its investment in renewable energy, with a projected capital expenditure of 64.9 billion yuan in 2024, a 32.44% increase from 2023 [3] Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 254.4 billion yuan and a net profit of 8.446 billion yuan, recovering from a loss in the previous year [2][3] - The coal power segment generated 188.8 billion yuan in revenue, with a total electricity generation of 375.8 billion kWh, reflecting a 3.27% increase [3] - The company’s total profit from wind power decreased by 5% to 5.9 billion yuan, while solar power profit surged by 78% to 2 billion yuan due to rapid installation growth [3] Profitability and Valuation - The company’s net profit forecast for 2024 and 2025 has been revised down to 12.086 billion yuan and 13.541 billion yuan, respectively, with an additional forecast for 2026 at 14.878 billion yuan [3] - The earnings per share (EPS) are projected to be 0.77 yuan for 2024, 0.86 yuan for 2025, and 0.95 yuan for 2026, with corresponding price-to-earnings (P/E) ratios of 12, 11, and 10 [3] Capital Expenditure and Future Outlook - The company plans to increase its capital expenditure in renewable energy to 64.9 billion yuan in 2024, indicating a strong commitment to transitioning towards green energy [3] - The coal price is expected to continue declining, which will further enhance profitability in the coal power segment [3]