GDG(SH:600098) INDUSTRIAL SECURITIES·2024-04-11 16:00Investment Rating - The investment rating for the company is "Add" [3] Core Views - The company experienced a slight decline in revenue due to lower coal prices, but profitability improved due to cost reductions in coal-fired power generation and expansion in gas and renewable energy businesses, resulting in a year-on-year net profit margin increase of 1.54 percentage points [2] - The fire power segment benefited from improved cost management, with fuel costs decreasing to 0.35 yuan per kilowatt-hour, a reduction of 0.03 yuan per kilowatt-hour year-on-year, and an increase in operating hours leading to a gross margin of 16.54%, up 14.71 percentage points year-on-year [2] - The LNG emergency peak-shaving gas source station commenced operations, contributing to a 44.1% year-on-year increase in gas sales volume, with a gross margin increase of 1.27 percentage points [2] - The renewable energy segment saw gross profit increases in wind and solar businesses due to expanded capacity [2] - The company plans to increase capital expenditures to 8.345 billion yuan in 2024, with significant investments in renewable energy projects [4] Financial Summary - For the year 2023, the company reported revenue of 467.55 billion yuan, a decrease of 2.29% year-on-year, while net profit increased by 20.98% to 16.38 billion yuan [4] - The gross margin improved to 10.78%, an increase of 3.27 percentage points year-on-year, with a cash dividend of 0.25 yuan per share, representing a payout ratio of 53.53% [4] - The company’s projected net profits for 2024-2026 are 20.88 billion yuan, 24.27 billion yuan, and 25.96 billion yuan, reflecting year-on-year growth rates of 27.5%, 16.2%, and 7.0% respectively [4][5] - The price-to-earnings (PE) ratios for 2024-2026 are projected at 11.7x, 10.1x, and 9.4x respectively [4][5]