ZZEPC(SH:600023) Southwest Securities·2024-05-08 01:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a revenue of 96 billion yuan in 2023, representing a year-on-year growth of 19.7%, and a net profit attributable to shareholders of 6.52 billion yuan, up 457% year-on-year [2] - In Q1 2024, the company achieved a revenue of 20 billion yuan, a 13.5% increase year-on-year, with a net profit of 1.82 billion yuan, reflecting a 79.6% growth [2] - The company distributed a cash dividend of 2.5 yuan per 10 shares, with a cash dividend payout ratio of 51.4% [2] Summary by Sections Financial Performance - The company's power business generated revenue of 68.9 billion yuan in 2023, a 7.9% increase, with a gross margin of 7.4%, up 15.75 percentage points year-on-year [2] - The company completed an on-grid electricity volume of 154.5 billion kWh, a 7.5% increase year-on-year, with coal power utilization hours reaching 5,533 hours, an increase of 123 hours [2] - The average coal price in Qinhuangdao for 2023 was 980.8 yuan/ton, down 279 yuan/ton year-on-year, and as of April 30, 2024, the coal price was 840 yuan/ton, indicating a continued low price trend [2] Investment Income - The company reported an investment net income of 4.61 billion yuan in 2023, with 4.24 billion yuan from joint ventures, a 45% increase year-on-year [2] - In Q1 2024, the investment net income was 1.23 billion yuan, a 20.3% increase year-on-year [2] Shareholder Returns - The company has maintained a cash dividend payout ratio above 50% since 2017, emphasizing shareholder returns [2] - The expected total cash dividend distribution for 2023 is 3.35 billion yuan, with a dividend yield of 4.0% based on the stock price as of April 30 [2] Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 7.72 billion yuan, 8.71 billion yuan, and 9.57 billion yuan, respectively, with corresponding EPS of 0.58, 0.65, and 0.71 yuan [2][3]