Minsheng Securities·2024-03-23 16:00Investment Rating - The report maintains a "Recommended" rating for the company [5][6]. Core Views - The company reported a slight decline in revenue and net profit for 2023, with total revenue at 343.07 billion yuan, down 0.4% year-on-year, and net profit attributable to shareholders at 59.69 billion yuan, down 14.3% year-on-year [2][4]. - The company plans to distribute a cash dividend of 2.26 yuan per share, with a payout ratio of 75.2%, indicating strong cash flow and a high dividend yield of 6.0% for A-shares and 8.3% for H-shares [2][4]. - The coal production and sales showed steady growth, with coal production reaching 324.5 million tons, up 3.5% year-on-year, and sales volume at 450 million tons, up 7.7% year-on-year [4][5]. - The company expects to benefit from an upward shift in coal prices due to tightening supply and stable demand from thermal power and coal chemical sectors [4][5]. Summary by Sections Financial Performance - In Q4 2023, the company achieved a net profit of 11.43 billion yuan, a year-on-year increase of 9.1%, while the non-recurring net profit rose by 26.4% year-on-year [2][4]. - The company recorded a significant increase in special reserve provisions, totaling 4.93 billion yuan, up 50.5% year-on-year, impacting current profits but not cash flow [2][4]. Dividend Policy - The proposed cash dividend distribution amounts to approximately 44.90 billion yuan, representing 75.2% of the net profit, which is higher than the previous year's 72.8% [2][4]. Coal Business - The company’s coal business generated an operating profit of 62.29 billion yuan, down 12.96% year-on-year, with a profit margin of 22.79% [4][5]. - The average selling price of coal decreased by 9.3% year-on-year, while the unit cost of self-produced coal increased by 1.5% [4][5]. Power Generation - The total power generation increased by 11.0% year-on-year, reaching 212.26 billion kWh, with a corresponding increase in sales volume [4][5]. - The power business achieved an operating profit of 12.28 billion yuan, up 37.5% year-on-year, with a profit margin of 13.3% [4][5]. Transportation and Chemical Business - The transportation segment saw a 4.0% increase in self-owned railway transport turnover, while the overall profitability of the transportation business declined [4][5]. - The chemical segment reported a significant drop in operating profit, down 75.9% year-on-year, due to falling prices of olefins [5].