Great Wall Securities·2024-03-24 16:00Investment Rating - The report maintains a "Buy" rating for China Shenhua, expecting a price increase of over 15% relative to the industry index within the next six months [16]. Core Views - China Shenhua's integrated energy operations have shown resilience despite coal price declines, with a strong dividend yield of 5.96% [11][10]. - The company reported a slight decrease in revenue and net profit for 2023, but its coal production and sales volumes have remained stable [3][2]. - The report highlights the company's diversified operations across coal, power generation, transportation, and coal chemical sectors, which help mitigate cyclical fluctuations [11]. Financial Performance Summary - Revenue: In 2023, the company achieved revenue of 343.07 billion yuan, a year-on-year decrease of 0.4% [1]. - Net Profit: The net profit attributable to shareholders was 59.69 billion yuan, down 14.3% year-on-year [1]. - Earnings Per Share (EPS): The basic EPS for 2023 was 3.00 yuan, a decrease of 14.3% compared to the previous year [1]. - Return on Equity (ROE): The ROE for 2023 was 14.5%, down from 17.8% in 2022 [1]. Segment Performance Summary - Coal Business: The coal segment generated revenue of 273.31 billion yuan in 2023, a decrease of 1.5% year-on-year, with a gross profit margin of 32.0% [3][8]. - Power Generation: The power generation segment reported revenue of 92.41 billion yuan, an increase of 9.3% year-on-year, with a gross profit margin of 16.9% [7]. - Transportation: The transportation segment achieved revenue of 42.96 billion yuan, a year-on-year increase of 1.8% [8]. - Coal Chemical: The coal chemical segment's revenue was 6.10 billion yuan, down 4.4% year-on-year, with a significant drop in gross profit margin [8]. Future Outlook - The company plans to invest 368.04 billion yuan in capital expenditures for 2024, with a focus on power generation and renewable energy projects [10]. - Revenue projections for 2024-2026 are 354.51 billion yuan, 368.10 billion yuan, and 384.32 billion yuan, respectively, with net profits expected to grow steadily [11].