Haitong Securities·2024-05-06 10:02Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Views - The report highlights that the coal business remains stable while the power sector shows significant profit growth. The company achieved a revenue of 87.65 billion yuan in Q1 2024, with a year-on-year increase of 0.7%. The net profit attributable to the parent company was 15.88 billion yuan, reflecting a year-on-year decrease of 14.7% but a quarter-on-quarter increase of 39% [6][7]. Summary by Sections Financial Performance - In Q1 2024, the company reported a net profit of 15.88 billion yuan, down 14.7% year-on-year but up 39% quarter-on-quarter. The non-recurring net profit was 16.46 billion yuan, down 11.2% year-on-year but up 9.3% quarter-on-quarter [6][7]. - The coal segment's self-produced coal sales volume was 8.03 million tons, with a year-on-year increase of 1.1% and a quarter-on-quarter decrease of 2.9%. The average selling price for coal was 573 yuan per ton, down 7.7% year-on-year [6][7]. - The power segment achieved a sales volume of 55.35 billion kWh, up 7% year-on-year, with a gross profit margin of 16.9%, reflecting an increase from the previous quarter [6][7]. Revenue and Profit Forecast - The company is expected to achieve net profits of 60.13 billion yuan, 60.28 billion yuan, and 61.27 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 3.03, 3.03, and 3.08 yuan [6][7][9]. - The report anticipates stable profitability in the coal business due to a high proportion of long-term contracts, while the new power generation capacity is expected to contribute to revenue growth [6][7]. Valuation - The company is projected to have a reasonable valuation range of 42.37 to 45.40 yuan based on a PE ratio of 14 to 15 times for 2024 [6][7].