Soochow Securities·2024-03-21 16:00Investment Rating - The investment rating for Huaneng International is "Buy" (maintained) [1] Core Views - The report highlights a cash dividend ratio of 57.14% for 2023, indicating a continuous improvement in dividend rates amid a downward cycle in capital expenditures for thermal power [1][3] - The report anticipates an improvement in the dividend rate for the thermal power sector in 2024, driven by a decline in capital expenditures and a downward trend in thermal coal prices [3] - The company achieved a significant increase in net profit of 214.33% year-on-year in 2023, attributed to a decrease in coal procurement costs [3][4] Financial Performance Summary - In 2023, Huaneng International reported total revenue of 254.4 billion yuan, a year-on-year increase of 3.11%, and a net profit attributable to shareholders of 8.446 billion yuan, a year-on-year increase of 214.33% [2][4] - The company’s earnings per share (EPS) for 2023 was 0.54 yuan, with a projected EPS of 0.83 yuan for 2024 and 1.12 yuan for 2026 [2][4] - The price-to-earnings (P/E) ratio is projected to be 10.80 for 2024, 9.01 for 2025, and 8.06 for 2026 [2][4] Segment Profit Analysis - The coal-fired segment achieved a total profit of 433 million yuan in 2023, a year-on-year increase of 102.5%, while the photovoltaic segment reported a profit of 2.044 billion yuan, a year-on-year increase of 78.08% [4] - The wind power segment's profit decreased by 5.16% year-on-year, totaling 5.913 billion yuan [4] Market Data - The closing price of Huaneng International's stock is 9.00 yuan, with a market capitalization of approximately 141.3 billion yuan [6] - The stock has a price-to-book (P/B) ratio of 2.69 and a net asset value per share of 3.35 yuan [6][7]