Q4减值拖累全年业绩，分红57%提升股东回报

Investment Rating - The investment rating for Huaneng International is "Buy" with a maintained rating [1][8]. Core Views - The report highlights that Huaneng International 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, a significant increase of 214.33% year-on-year. However, the Q4 performance was impacted by impairment losses, leading to a net profit of -4.118 billion yuan in Q4 2023, a decrease of 19.54% year-on-year [1][2]. - The report anticipates that coal prices will decline further in 2024, supporting stable performance and future dividend expectations for the company [1]. - The profitability of thermal power improved in 2023, with expectations for further improvement in 2024 due to reduced fuel costs and increased electricity sales [1][2]. Summary by Sections Financial Performance - In 2023, Huaneng International's total revenue was 254.4 billion yuan, with a net profit of 8.446 billion yuan. The Q4 revenue was 63.075 billion yuan, with a net loss of 4.118 billion yuan due to impairment provisions [1][3]. - The company reported a significant increase in thermal power profits, with total profits reaching 433 million yuan, a year-on-year increase of 102.5% [1][2]. Future Projections - The forecast for net profit attributable to shareholders for 2024-2026 is 12.577 billion yuan, 13.851 billion yuan, and 15.607 billion yuan, respectively, with corresponding P/E ratios of 11.4, 10.3, and 9.2 [2][3]. - The target price for the stock is set at 10.95 yuan for 2024 [2][4]. Capital Expenditure - The planned capital expenditures for wind and solar power in 2024 are 29.544 billion yuan and 35.381 billion yuan, respectively, indicating a significant increase in investment in renewable energy [2][3].