HDPI(SH:600027) Tianfeng Securities·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Views - The company's profitability in thermal power has significantly improved, with a gross margin increase of 6.69 percentage points year-on-year [2]. - The company achieved a revenue of 117.2 billion yuan in 2023, representing a year-on-year growth of 9.45%, and a net profit attributable to shareholders of 4.52 billion yuan, a remarkable increase of 3789% [1][6]. - Investment income from new energy and coal has contributed positively to the company's performance, with investment income reaching 3.8 billion yuan in 2023 [3]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 117.18 billion yuan, up 9.45% from the previous year [6]. - The net profit attributable to shareholders was 4.52 billion yuan, showing a dramatic increase of 3789% compared to 2022 [1][6]. - The EBITDA for 2023 was 19.40 billion yuan, indicating a strong operational performance [6]. Thermal Power Business - The thermal power generation volume increased by 1.55% to 214.5 billion kWh in 2023, despite a slight decrease in the comprehensive electricity price [2]. - Fuel costs decreased by approximately 8.93% to about 75.46 billion yuan, primarily due to falling coal prices [2]. - The gross profit from thermal power reached 7.59 billion yuan, a significant increase year-on-year, with a gross margin of 8.05% [2]. New Energy and Investment - The company holds a 31% stake in Huadian New Energy, contributing approximately 2.95 billion yuan in investment income for the year [3]. - The company plans to expand its new energy capacity significantly during the 14th Five-Year Plan, with an expected addition of 75 GW [3]. Future Outlook - For 2024, the company anticipates a stable power generation volume of around 220 billion kWh, with expectations for further improvement in profitability [4]. - The capital expenditure for 2024 is projected to be approximately 9.7 billion yuan, focusing on power generation projects and environmental upgrades [4].