行稳致远，龙头风范尽显

Investment Rating - The report maintains a "Buy" rating for China Shenhua (601088.SH) [3] Core Views - The company demonstrated stable performance with a net profit of 59.7 billion RMB in 2023, a year-on-year decrease of 14.3%, while the fourth quarter net profit was 11.43 billion RMB, a quarter-on-quarter decrease of 23.8% but a year-on-year increase of 8.9% [1] - The coal business is progressing steadily with resource continuity and capacity expansion, achieving a production and sales volume of 325 million tons and 450 million tons respectively in 2023, representing year-on-year increases of 3.5% and 7.7% [1] - The average selling price of coal in 2023 was 584 RMB per ton, down 9.3% year-on-year, while the cost of self-produced coal was 179 RMB per ton, up 1.5% year-on-year [1] - The electricity business saw a sales volume of 212.3 billion kWh in 2023, an increase of 11% year-on-year, primarily due to new projects coming online [2] - The average selling price of electricity was 414 RMB per MWh, a decrease of 1% year-on-year, while the unit cost of electricity sales was 363 RMB per MWh, down 4.7% year-on-year [2] - The company plans to distribute a dividend of 22.6 RMB per 10 shares, which accounts for 75.2% of the net profit attributable to shareholders [2] Summary by Sections Coal Business - The company is actively working on coal resource continuity and capacity expansion, with several mining licenses obtained and capacity increases approved [1] - In 2023, the production and sales volumes were 325 million tons and 450 million tons respectively, with a year-on-year increase of 3.5% and 7.7% [1] - The average selling price of coal was 584 RMB per ton, reflecting a year-on-year decrease of 9.3% [1] Electricity Business - The total electricity sales volume reached 212.3 billion kWh in 2023, marking an 11% increase year-on-year [2] - The average selling price of electricity was 414 RMB per MWh, down 1% year-on-year, while the unit cost decreased by 4.7% to 363 RMB per MWh [2] Financial Performance - The company reported a net profit of 59.7 billion RMB in 2023, with a proposed dividend distribution reflecting a high payout ratio [2] - Future profit estimates for 2024 to 2026 are projected at 60.6 billion RMB, 60.6 billion RMB, and 62.4 billion RMB respectively, with corresponding P/E ratios of 12.4X, 12.4X, and 12.1X [2]