HDPI(SH:600027) Guoxin Securities·2024-03-31 16:00Investment Rating - The investment rating for Huadian International (600027.SH) is "Buy" [1][4] Core Views - The company's revenue has steadily increased, with a significant year-on-year growth in net profit. In 2023, the company achieved a revenue of 117.176 billion yuan (+9.45%) and a net profit attributable to shareholders of 4.522 billion yuan (+3789.00%) [1][5] - The increase in revenue is primarily driven by an increase in coal trading volume, while the substantial growth in net profit is attributed to a decrease in fuel costs, which were approximately 75.462 billion yuan in 2023 (-8.93%) [1][5] - The company's installed capacity for thermal power generation has further increased, which is expected to drive performance growth. As of 2023, the company has a controlling installed capacity of 58.45 GW, including coal power (46.89 GW), gas power (9.09 GW), and hydro power (2.46 GW) [1][14] - The stabilization of electricity prices and the decline in coal prices are expected to further improve the profitability of thermal power generation [1][15] Summary by Sections Financial Performance - In 2023, the company reported a revenue of 117.176 billion yuan, a 9.45% increase from the previous year. The net profit attributable to shareholders was 4.522 billion yuan, reflecting a dramatic increase of 3789.00% [2][5] - The company's investment income was approximately 3.776 billion yuan, a decrease of 21.41% year-on-year, mainly due to reduced earnings from coal enterprises [1][5] Installed Capacity and Projects - The company has increased its thermal power generation capacity, with 3.70 GW of new power generation projects put into operation in 2023, including 3.02 GW of coal power and 0.68 GW of gas power [1][14] - The company has approved and under-construction units with a total capacity of 6.54 GW, which includes 3.32 GW of coal power and 2.92 GW of gas power [1][14] Profitability and Cost Management - The company's gross margin improved to 6.43% in 2023, an increase of 6.00 percentage points year-on-year, primarily due to the decline in coal prices [1][12] - The company is implementing various measures to enhance operational efficiency, including optimizing coal procurement and reducing financial costs through refinancing [1][15] Future Outlook - The company has raised its profit forecast due to the growth in coal power generation capacity and the decline in coal prices. Expected net profits for 2024-2026 are projected to be 6.8 billion yuan, 7.5 billion yuan, and 8.1 billion yuan, respectively [1][15]