SDIC Power(SH:600886)2024-04-30 14:02Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a net profit attributable to shareholders of 6.705 billion yuan for 2023, a year-on-year increase of 64.31%, and proposed a dividend of 0.4948 yuan per share, accounting for 55% of the net profit [5] - In Q1 2024, the company achieved a net profit of 2.035 billion yuan, a year-on-year growth of 26.14%, exceeding previous expectations [5] - The report highlights the impact of reduced water levels on power generation in 2023, but anticipates a recovery in 2024 due to rising electricity prices [5] - The company’s thermal power segment turned profitable in 2023, with significant contributions from new coal-fired units [5] - The rapid growth of renewable energy installations is expected to drive a substantial increase in power generation [5] Summary by Sections Market Data - Closing price as of April 29, 2024: 15.25 yuan - Market capitalization: 106.23 billion yuan - Price-to-book ratio: 1.9 [2] Financial Data - As of March 31, 2024, the company had a net asset value per share of 8.2 yuan and a debt-to-asset ratio of 62.38% [3] Performance Overview - Total revenue for 2023 was 56.712 billion yuan, with a year-on-year growth of 12.3% [6] - The company’s gross profit margin for 2023 was 36.1% [6] - The forecast for net profit attributable to shareholders for 2024 is 8.038 billion yuan, representing a year-on-year increase of 19.9% [6] Earnings Forecast and Valuation - The net profit forecasts for 2024, 2025, and 2026 are 8.038 billion yuan, 8.759 billion yuan, and 9.323 billion yuan respectively [6] - The current price-to-earnings ratios for 2024, 2025, and 2026 are projected to be 14, 13, and 12 times respectively [6]