SDIC Power(SH:600886) Minsheng Securities·2024-05-06 07:30Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [3]. Core Views - The company reported a revenue of 56.712 billion yuan in 2023, a year-on-year increase of 12.32%, and a net profit attributable to shareholders of 6.705 billion yuan, up 64.31% year-on-year [1]. - The first quarter of 2024 showed a revenue of 14.108 billion yuan, a 6.43% increase year-on-year, and a net profit of 2.035 billion yuan, reflecting a 26.14% year-on-year growth [1]. - The company’s hydropower revenue remained stable, with a total of 25.575 billion yuan in 2023, and the average on-grid electricity price increased by 4.5% in Q1 2024 [1]. - The thermal power segment showed significant recovery, with a net profit of 1.348 billion yuan from controlled coal power enterprises in 2023, an increase of 30.96 billion yuan year-on-year [1]. - The company added 2.4324 million kilowatts of new energy capacity in 2023, with total installed capacity reaching 7.04 million kilowatts [1]. Summary by Sections Financial Performance - 2023 revenue was 56.712 billion yuan, with a growth rate of 12.3% [2]. - Net profit attributable to shareholders for 2023 was 6.705 billion yuan, with a growth rate of 64.3% [2]. - EPS for 2024 is projected at 0.88, increasing to 1.01 in 2025 and 1.02 in 2026 [2]. Future Projections - Revenue is expected to reach 62.762 billion yuan in 2024, with a growth rate of 10.7% [2]. - The net profit for 2024 is projected at 7.693 billion yuan, reflecting a growth rate of 14.7% [2]. - The target price for the stock is set at 18.18 yuan per share, based on a PE ratio of 18.0 for 2024 [1][3]. Operational Insights - The company’s hydropower segment is expected to maintain its annual performance despite quarterly fluctuations [1]. - The thermal power segment is anticipated to continue its recovery, supported by a decrease in coal prices and increased generation capacity [1]. - The new energy segment is projected to contribute more significantly to overall performance as capacity expands [1].