Changjiang Securities·2024-03-21 16:00Investment Rating - The investment rating for Huaneng International is "Buy" and is maintained [5]. Core Views - The company's operating performance continues to recover, with significant improvements in coal-fired power generation profitability, despite a substantial impairment loss of 3.099 billion yuan [5][6]. - In 2023, the company achieved a total operating revenue of 254.397 billion yuan, a year-on-year increase of 3.11%, and a net profit attributable to shareholders of 8.446 billion yuan, representing a year-on-year growth of 214.33% [5][6]. - The company plans to distribute a cash dividend of 0.2 yuan per share, achieving a cash dividend payout ratio of 57.14%, reflecting its commitment to shareholder returns [6]. Summary by Sections Operating Performance - In 2023, the company's coal-fired power generation saw a recovery, with a total electricity generation of 375.804 billion kWh, up 3.27% year-on-year. The average trading price of coal-fired electricity was 481.01 yuan/MWh, an increase of 21.19% compared to the benchmark price [5][6]. - The company recorded a profit of 4.33 billion yuan from coal-fired power generation, recovering from a loss of 17.325 billion yuan in the previous year [5][6]. New Energy Performance - By the end of 2023, the company's installed capacity for new energy reached 28.611 million kW, a year-on-year increase of 43.74%. Wind power generation increased by 16.14% to 31.835 billion kWh, while solar power generation surged by 81.67% to 10.911 billion kWh [6]. - The profit from the wind power segment was 5.913 billion yuan, a decrease of 3.22 billion yuan year-on-year, primarily due to increased grid parity projects and system peak load responsibilities [6]. Financial Outlook - The company adjusted its earnings expectations for 2024-2026, forecasting EPS of 1.04 yuan, 1.06 yuan, and 1.17 yuan, with corresponding PE ratios of 8.75, 8.63, and 7.77 [6].