HDPI(SH:600027) Guotai Junan Securities·2024-03-28 16:00Investment Rating - The investment rating for Huadian International (600027) is maintained as "Buy" with a target price of 8.19 CNY, up from the previous target of 6.84 CNY [1][2]. Core Insights - The report highlights a reduction in impairment losses and a continuous improvement in the balance sheet, indicating potential for increased dividends in the future [1][2]. - The company's revenue for 2023 is reported at 117.2 billion CNY, a year-on-year increase of 9.5%, with a net profit attributable to shareholders of 4.52 billion CNY, reflecting a significant year-on-year growth of 3789% [1][3]. - The report anticipates that the profitability of the coal power segment is likely to recover to previous levels due to changes in pricing factors [1][3]. Summary by Sections Financial Performance - The company achieved a revenue of 117.2 billion CNY in 2023, with a net profit of 4.52 billion CNY, marking a substantial increase compared to the previous year [1][3]. - The earnings per share (EPS) for 2024 is projected to be 0.63 CNY, up from the previous estimate of 0.57 CNY [1][2]. Balance Sheet - As of Q4 2023, the company's total liabilities amounted to 307 billion CNY, with a debt ratio of 62.6%, showing a slight decrease from the previous year [1][2]. - The report indicates that the balance sheet is expected to continue improving, with potential for enhanced dividend capacity in the future [1][2]. Market Comparison - The report compares Huadian International with its peers, suggesting a valuation based on a 13x PE ratio for 2024, which supports the target price adjustment [1][2][7]. - The average PE ratio for comparable companies is noted to be around 10.7 for 2024, indicating a competitive positioning for Huadian International [7].