Jiangsu Guoxin (SZ:002608) Minsheng Securities·2024-04-11 16:00Investment Rating - The report maintains a "Cautious Recommendation" rating for the company, with a target price of 8.76 CNY based on a PE of 12.0 times [4][11]. Core Views - The company reported a significant increase in net profit for 2023, achieving 1.87 billion CNY, a year-on-year growth of 3014.44% [1]. - The financial segment has provided a stable performance cushion, with revenues of 3.004 billion CNY, up 21.3% year-on-year [1]. - The company expects a substantial increase in net profit for Q1 2024, projected at 779 million CNY, a year-on-year increase of 202.9% [2]. Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 34.572 billion CNY, a year-on-year increase of 6.38% [1]. - The company’s total power generation reached 706.54 billion kWh, up 6.3% year-on-year, with significant contributions from coal-fired power plants in Jiangsu and Shanxi [1]. - The financial segment's investment income was a key contributor, with net investment income increasing by 47.2% to 2.107 billion CNY [1]. Profitability Forecast - The company adjusted its earnings per share (EPS) forecast for 2024 and 2025 to 0.73 CNY and 0.89 CNY, respectively, with a new 2026 EPS forecast of 1.01 CNY [2]. - The report indicates that the coal price is in a downward trend, which is expected to positively impact the company's performance in the upcoming quarters [2]. Market Position - The company’s coal procurement structure optimization and the rapid decline in coal prices are expected to enhance its coal-fired power performance [2]. - The report highlights that the Shanxi power plants have a significant cost advantage due to lower fuel costs, contributing to improved profitability [1].