Shenergy(SH:600642) Southwest Securities·2024-05-08 01:00Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The company reported a revenue of 29.1 billion yuan in 2023, a year-on-year increase of 3.4%, and a net profit attributable to shareholders of 3.46 billion yuan, up 220% year-on-year [2]. - In Q1 2024, the company achieved a revenue of 8.07 billion yuan, representing a 10.9% year-on-year growth, with a net profit of 1.16 billion yuan, up 58.0% year-on-year [2]. - The company plans to distribute a cash dividend of 4 yuan for every 10 shares, with a dividend payout ratio of 56.6% and a dividend yield of 4.7% based on the stock price as of April 30 [2]. - The decline in fuel costs has significantly improved the performance of the coal power business, with a 17.5% year-on-year decrease in coal costs, leading to a gross margin of 10.68%, up 10.61 percentage points year-on-year [2]. - The company’s investment income reached 1.57 billion yuan in 2023, a 476% increase year-on-year, with 650 million yuan from investments in joint ventures [2]. - The wind and solar power segments showed steady growth, with revenues of 2.7 billion yuan and 940 million yuan respectively in 2023, and generation increases of 1.9% and 17.6% year-on-year [2]. - In Q1 2024, the company’s electricity generation increased by 15.9% year-on-year, driven by rising local electricity demand [2]. Summary by Sections Financial Performance - The company’s total revenue for 2023 was 29.14 billion yuan, with a growth rate of 3.36% [4]. - The net profit attributable to shareholders for 2023 was 3.46 billion yuan, reflecting a growth rate of 219.52% [4]. - Earnings per share (EPS) for 2023 was 0.71 yuan, with projected EPS for 2024, 2025, and 2026 at 0.80, 0.88, and 0.95 yuan respectively [4][3]. Revenue and Profitability Forecast - The forecast for net profit attributable to shareholders for 2024, 2025, and 2026 is 3.90 billion yuan, 4.32 billion yuan, and 4.66 billion yuan respectively [3]. - The report anticipates a gross margin improvement across various segments, with coal power gross margin expected to reach 15.5% by 2024 [11]. Business Segments - The coal power segment is projected to generate revenue of 13.09 billion yuan in 2023, with a slight decline of 0.9% year-on-year [11]. - The gas power segment is expected to see significant growth, with a revenue increase of 31.7% in 2023 [11]. - The wind power segment is projected to grow at a rate of 2.7% in 2023, while the solar power segment is expected to grow by 16.2% [11].