WENERGY CO.,LTD.(SZ:000543) Orient Securities·2024-04-17 13:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 10.53 yuan based on a 13x PE valuation for 2024 [3][18]. Core Insights - The company achieved a significant increase in net profit attributable to shareholders, reaching 1.43 billion yuan in 2023, a year-on-year growth of 186.4% [2][19]. - The company is capitalizing on the "Xinjiang electricity into Anhui" opportunity, with the Jiangbu Power Plant's two 660 MW units commencing operation in September 2023, enhancing the quality of its thermal power assets [2]. - The average on-grid electricity price for the company's power business was 455.6 yuan/MWh in 2023, a slight decrease of 2.3% year-on-year, while coal prices have stabilized, leading to improved profitability in thermal power generation [2][19]. - The company is diversifying its energy portfolio by actively developing gas power, renewable energy, energy storage, and pumped storage projects, contributing to a more optimized power business structure [2][19]. - The company proposed a cash dividend of 2.21 yuan per 10 shares, representing a payout ratio of 35.05% of the net profit, an increase of 9.5 percentage points from the previous year [2]. Financial Summary - In 2023, the company reported total operating revenue of 27.87 billion yuan, an increase of 8.3% year-on-year [2][19]. - The gross profit margin for the power generation sector reached 7.69%, reflecting a year-on-year increase of 5.72 percentage points [2]. - The forecasted net profits for 2024, 2025, and 2026 are 1.83 billion yuan, 2.22 billion yuan, and 2.31 billion yuan, respectively, with corresponding earnings per share of 0.81 yuan, 0.98 yuan, and 1.02 yuan [3][19].