YEIC(SZ:002053) Guotai Junan Securities·2024-04-09 16:00Investment Rating - The report maintains a rating of "Buy" for Yunnan Energy Investment (002053) [2][7] - The target price is set at 16.52, with the current price at 11.05 [2][7] Core Views - The company's new projects have validated profitability, leading to an unexpected growth in performance [7] - The expected net profit for Q1 2024 is projected to be between 340 million to 370 million, representing a year-on-year increase of 91.4% to 108% [7] - The growth is primarily driven by a significant increase in electricity sales from the new energy sector [7] Financial Summary - Revenue is forecasted to grow from 2,904 million in 2023 to 4,058 million in 2024, reflecting a 40% increase [2][7] - Operating profit (EBIT) is expected to rise from 543 million in 2023 to 1,381 million in 2024, indicating a 154% growth [2][7] - Net profit attributable to shareholders is projected to increase from 482 million in 2023 to 1,003 million in 2024, a growth of 108% [2][7] Operational Insights - The company has a robust project reserve, with installed capacity expected to continue growing [7] - As of the end of 2023, the company has an approved planned installed capacity of 2.1 GW and ongoing projects of 0.5 GW [7] - The company anticipates that the market price for electricity will remain stable due to tight supply and demand in Yunnan province [7] Profitability Metrics - The report indicates an increase in revenue growth rate from 8.5% in 2023 to 39.7% in 2024 [2][7] - The EBIT margin is expected to rise significantly from 18.7% in 2023 to 34.0% in 2024 [2][7] - Return on equity (ROE) is projected to improve from 7.0% in 2023 to 13.2% in 2024 [2][7]