Shenergy(SH:600642) EBSCN·2024-05-06 01:02Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported significant improvement in coal power profitability, with Q1 2024 performance exceeding expectations [2] - The company achieved a revenue of 29.142 billion yuan in 2023, a year-on-year increase of 3.36%, and a net profit of 3.459 billion yuan, up 219.52% [2] - The company plans to distribute a cash dividend of 0.40 yuan per share, totaling 1.958 billion yuan, with a payout ratio of approximately 56.34% [2] - In Q1 2024, the company recorded a revenue of 8.071 billion yuan, a 10.87% increase year-on-year, and a net profit of 1.159 billion yuan, up 57.96% [2] Summary by Sections Financial Performance - The company's controlled power generation enterprises completed a total power generation of 55.111 billion kWh in 2023, a 2.6% increase year-on-year [2] - Coal power generation was 40.201 billion kWh, a slight decrease of 1.7%, leading to a revenue decline of 0.93% [2] - The coal power segment achieved a gross profit of 1.398 billion yuan, a significant increase of 1.393 billion yuan year-on-year due to a notable decrease in thermal coal costs [2] - In Q1 2024, the company’s power generation increased to 15.542 billion kWh, a 15.9% year-on-year increase, with coal power generation at 11.316 billion kWh, up 10.0% [2] Investment Income - The company reported investment income of 1.567 billion yuan in 2023, a year-on-year increase of 12.95%, with significant contributions from equity investments in power operators [2] - In Q1 2024, the company achieved investment income of 345 million yuan, with a fair value increase of related assets contributing an additional 319 million yuan [2] Future Outlook - The report projects an increase in net profit for 2024E-2025E to 3.952 billion yuan and 4.471 billion yuan, respectively, reflecting an upward revision of 5.98% and 15.32% [3] - The company’s earnings per share (EPS) for 2024-2026 are forecasted at 0.81, 0.91, and 0.98 yuan, with corresponding price-to-earnings (P/E) ratios of 11, 9, and 9 times [3] - The report highlights that the company’s fundamentals are expected to gradually improve, maintaining a "Buy" rating based on the declining coal price and high dividend payout ratio [3]