Soochow Securities·2024-03-21 16:00Investment Rating - The report maintains a "Buy" rating for Huaneng International [1] Core Views - The company achieved a cash dividend ratio of 57.14% in 2023, indicating a continuous improvement in dividend rates amid a downward cycle in capital expenditure for thermal power [1][3] - The report highlights the expected improvement in dividend rates for the thermal power sector due to declining capital expenditures and a downward trend in coal prices from 2024 to 2025 [3] - The company benefited from a decrease in coal procurement costs, with an average price drop of 115.78 yuan/ton, leading to a significant increase in net profit by 214.33% in 2023 [3][4] Financial Performance Summary - In 2023, the company reported total 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, up 214.33% year-on-year [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 1.00 yuan for 2025 [2][4] - The report forecasts net profits of 13.083 billion yuan for 2024 and 15.678 billion yuan for 2025, with a projected net profit of 17.525 billion yuan for 2026, reflecting growth rates of 54.91%, 19.83%, and 11.78% respectively [4] Segment Profit Analysis - The coal-fired segment achieved a profit of 433 million yuan in 2023, a year-on-year increase of 102.5%, while the photovoltaic segment saw a profit of 2.044 billion yuan, up 78.08% [4] - The report indicates that the wind power segment's profit decreased by 5.16%, totaling 5.913 billion yuan [4] Market Data - The closing price of the stock is 9.00 yuan, with a market capitalization of approximately 141.283 billion yuan [6] - The price-to-earnings (P/E) ratio is reported at 16.73 for the current price and 10.80 for the latest diluted earnings [2][6]