Shenergy(SH:600642) Guotai Junan Securities·2024-05-06 02:02Investment Rating - The report maintains an "Accumulate" rating for the company, with a target price raised to 10.08 yuan, up from the previous forecast of 8.30 yuan [1][2]. Core Views - The company's coal power business is expected to continue its recovery, highlighting the long-term dividend value supported by ample cash flow [1][2]. - The company reported a significant increase in revenue and net profit for Q1 2024, with revenue reaching 80.7 billion yuan, up 10.9% year-on-year, and net profit of 11.6 billion yuan, up 58.0% year-on-year [1][6]. - The company has a history of consistent cash dividends since its listing in 1993, with cumulative dividends amounting to 22.5 billion yuan [1][2]. Summary by Sections Company Overview - The company, Shenergy Co., Ltd., is a leading player in the power and energy sector in China, with investments across coal, gas, hydro, nuclear, wind, and solar power [2][6]. Financial Performance - For 2023, the company reported a revenue of 291 billion yuan, a year-on-year increase of 3.4%, and a net profit of 34.6 billion yuan, a year-on-year increase of 220% [1][6]. - The earnings per share (EPS) for 2024 and 2025 are projected to be 0.72 yuan and 0.78 yuan, respectively, with a PE ratio of 14 times for 2024 [1][7]. Dividend Policy - The company plans to distribute a dividend of 0.40 yuan per share for 2023, with a dividend payout ratio reflecting its commitment to shareholder returns [1][2]. Market Position - The company is positioned favorably within the industry, with a current market capitalization of 41.65 billion yuan and a stock price range of 5.77 to 8.63 yuan over the past year [2][6].