GUANGHUI ENERGY(SH:600256) Huachuang Securities·2024-04-23 05:32Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 9.00 RMB, reflecting a 10x valuation for 2024 [2]. Core Views - The company reported a revenue of 61.475 billion RMB in 2023, a year-on-year increase of 3.48%, but the net profit attributable to shareholders decreased by 54.37% to 5.173 billion RMB [2]. - The company plans to distribute a cash dividend of 0.7 RMB per share, corresponding to a dividend yield of approximately 8.8% based on the closing price on April 19, 2024 [2]. - The coal production and sales showed steady growth, with raw coal and quality coal production increasing by 9% and 12% respectively, while sales increased by 13% and 32% [2]. - The average selling price of coal decreased by 17% to 475 RMB per ton, while the average cost was approximately 310 RMB per ton, leading to a gross margin of 34.68%, down 9.52 percentage points year-on-year [2]. - The natural gas segment saw a production of 5.80 billion cubic meters, a decrease of 26%, but sales increased by 31% to 8.684 billion cubic meters [2]. - The average selling price of natural gas fell by 15% to 4.42 RMB per cubic meter, resulting in a gross margin of 8.11%, down 12.76 percentage points year-on-year [2]. - The coal chemical segment's gross margin was 23.65%, down 11.09 percentage points, with production and sales of methanol and by-products declining due to maintenance impacts [2]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 61.475 billion RMB, with a year-on-year growth of 3.5% projected for 2024 [3]. - The net profit for 2023 was 5.173 billion RMB, with a forecasted increase to 5.925 billion RMB in 2024, reflecting a 14.5% growth [3]. - Earnings per share (EPS) for 2023 was 0.79 RMB, expected to rise to 0.90 RMB in 2024 [3]. Production and Sales - Coal production reached 2,231 million tons, with sales of 2,588 million tons, marking increases of 9% and 13% respectively [2]. - Natural gas sales increased to 8.684 billion cubic meters, while production saw a decline [2]. - The coal chemical segment experienced a decrease in production and sales of methanol and by-products due to maintenance [2]. Market Outlook - The report anticipates that the company will benefit from the gradual recovery of production capacity in the coal chemical sector and improvements in oil prices [2]. - The company is expected to maintain a high dividend payout ratio, enhancing its long-term investment appeal [2].