Huachuang Securities·2024-03-20 16:00Investment Rating - The report maintains a "Strong Buy" rating for Huaneng International, with a target price of 10.68 CNY, indicating a potential upside of 17% from the current price of 9.18 CNY [2]. Core Views - The company's 2023 revenue reached 254.40 billion CNY, a year-on-year increase of 3.11%, while the net profit attributable to shareholders surged by 214.33% to 8.45 billion CNY [2][3]. - The fourth quarter of 2023 saw a revenue of 63.08 billion CNY, a slight increase of 0.48% year-on-year, but a net loss of 4.12 billion CNY attributable to shareholders [2]. - The report highlights the recovery in thermal power generation and rapid growth in wind and solar energy, with respective generation increases of 3.32%, 5.06%, 15.56%, and 81.03% for coal, gas, wind, and solar power [2]. - The company plans a capital expenditure of 80.15 billion CNY for 2024, with significant investments in wind and solar energy, reflecting a strategic shift towards renewable energy [2]. - The report anticipates that falling coal prices will enhance profitability in the thermal power sector, while ongoing electricity market reforms may lead to a revaluation of thermal power assets [2]. Financial Summary - For 2023, total revenue was 254,397 million CNY, with a projected revenue of 263,263 million CNY for 2024, reflecting a growth rate of 3.5% [3]. - The net profit for 2023 was 8,446 million CNY, with forecasts of 12,899 million CNY, 15,238 million CNY, and 17,875 million CNY for 2024, 2025, and 2026 respectively, indicating substantial growth rates [3][9]. - The earnings per share (EPS) for 2023 was 0.54 CNY, expected to rise to 0.82 CNY in 2024 [3][9]. - The company’s total assets were reported at 541,159 million CNY for 2023, with a projected increase to 591,924 million CNY in 2024 [9].