SHENHUO COAL&POWER(SZ:000933) Huafu Securities·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 23.12 CNY, indicating an expected increase of over 20% relative to the market benchmark index within the next six months [5][17]. Core Insights - The company's 2023 annual report shows that it achieved a revenue of 37.625 billion CNY, a decrease of 11.89% year-on-year, and a net profit attributable to shareholders of 5.905 billion CNY, down 22.07% year-on-year [2][4]. - The decline in performance is attributed to falling coal prices and reduced aluminum production in Yunnan, leading to a decrease in net profit by approximately 1.7 billion CNY [2][3]. - Despite the challenges, the acquisition of additional equity in Yunnan Shenhuo is expected to increase net profit by about 250 million CNY, and tax incentives may further enhance profitability [3]. - The company plans to expand its aluminum foil production capacity to 140,000 tons by mid-2024, targeting growth in the battery aluminum foil market [3]. Financial Summary - The company reported a gross profit of 9.9 billion CNY in 2023, a decline of 25.81% year-on-year, with a significant drop in gross profit per ton for coal and aluminum [2][4]. - The projected net profits for 2024 to 2026 are estimated at 5.8 billion CNY, 6.8 billion CNY, and 7.9 billion CNY respectively, with corresponding EPS of 2.58 CNY, 3.03 CNY, and 3.52 CNY [4][12]. - The company has a dividend payout ratio of 30.5% for 2023, distributing a total of 1.8 billion CNY in cash dividends [3][4]. Market Data - The current stock price is 19.74 CNY, with a market capitalization of approximately 44.409 billion CNY [5]. - The company has a P/E ratio of 7.5 and a P/B ratio of 2.2 for 2023, indicating a relatively attractive valuation compared to historical performance [4][5].