GUANGHUI ENERGY(SH:600256) Changjiang Securities·2024-05-06 01:32Investment Rating - The investment rating for the company is "Buy" and is maintained [4][5][6]. Core Views - The company reported a revenue of 61.475 billion yuan 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 yuan. The fourth quarter saw a significant decline, with revenue of 11.906 billion yuan, down 46.20%, and a net profit of 0.323 billion yuan, down 89.00% [4][5]. - The decline in performance is attributed to a significant drop in product prices, particularly in the global natural gas market, which saw a 52.91% decrease in the average price of LNG in Northeast Asia to 16.13 USD per million British thermal units. Coal imports increased by 61.8%, but coal prices also fell, with the average price of 5000 kcal thermal coal in Qinhuangdao down 18.79% to 847.57 yuan per ton [4][5]. - The company is progressing with key projects, particularly in coal and natural gas, which highlight its growth potential. The Marang coal mine has substantial resources exceeding 1.8 billion tons, and the company is also advancing its LNG receiving station projects [4][5]. - The company has received approval for crude oil imports, which is expected to provide additional growth in its oil business. The Sarybulak oil field has commenced drilling new wells, and oil and gas projects are entering the trial production phase [5]. - The company emphasizes shareholder returns, proposing a cash dividend of 0.7 yuan per share, resulting in a dividend yield of 8.8%. The total cash dividend amounts to 4.547 billion yuan, with a payout ratio of 87.90% [5][6]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 61.475 billion yuan and a net profit of 5.173 billion yuan. The fourth quarter revenue was 11.906 billion yuan, with a net profit of 0.323 billion yuan [4][5]. - The projected earnings per share (EPS) for 2024-2026 are 0.86, 1.01, and 1.17 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 8.49X, 7.27X, and 6.25X based on the closing price on April 25, 2023 [5][6]. Business Development - The company is advancing key projects in coal and natural gas, with the Marang coal mine expected to have a low extraction cost due to its shallow coal seams and high-quality coal [4][5]. - The LNG receiving station and related projects are progressing, with significant milestones achieved in construction and environmental assessments [4][5]. Shareholder Returns - The company plans to distribute a cash dividend of 0.7 yuan per share, reflecting a commitment to shareholder returns with a high dividend yield [5][6].