XINJI ENERGY(SH:601918) Minsheng Securities·2024-04-26 11:30Investment Rating - The report maintains a "Recommended" rating for the company [6] Core Views - The company achieved a revenue of 3.058 billion yuan in Q1 2024, a year-on-year increase of 5.59%, and a net profit attributable to shareholders of 598 million yuan, up 0.62% year-on-year [1] - The gross profit margin improved to 41.95%, an increase of 1.95 percentage points year-on-year, driven by rising coal prices despite a slight decline in coal production [1][2] - The company is progressing steadily with new power plant projects, which are expected to contribute to significant revenue growth in the coming years [3] Financial Performance - In Q1 2024, the company reported a gross profit of 1.283 billion yuan, a 10.74% increase year-on-year, with a unit coal price of 574.93 yuan/ton, up 7.33% year-on-year [2] - The company’s coal production decreased by 9.41% year-on-year to 5.0143 million tons, while the sales volume of commercial coal fell by 1.53% and 5.44% respectively [2] - The company’s power generation increased significantly by 27.10% year-on-year to 24.62 billion kWh, with an average on-grid electricity price of 0.4081 yuan/kWh, a 1.49% increase year-on-year [2] Future Projections - The company is expected to see net profits attributable to shareholders of 2.504 billion yuan, 2.831 billion yuan, and 3.418 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 0.97, 1.09, and 1.32 yuan per share [3][5] - The report forecasts a PE ratio of 9, 8, and 7 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation outlook [3][5]