HDPI(SH:600027) Shanxi Securities·2024-05-09 07:00Investment Rating - The investment rating for Huadian International (600027.SH) is "Buy-A" (maintained) [1] Core Views - The company's performance in Q1 2024 is generally in line with expectations, with a slight decrease in revenue but a significant increase in profitability due to improved cost management [1] - The average on-grid electricity price for Q1 2024 was approximately RMB 509.31 per megawatt-hour, showing a slight decline compared to the previous year [1] - The company is actively expanding its coal supply channels and increasing the proportion of long-term coal contracts, which is expected to sustain profitability [1] Financial Performance Summary - For Q1 2024, the company reported operating revenue of RMB 30.952 billion, a year-on-year decrease of 3.21%, while net profit attributable to shareholders was RMB 1.862 billion, an increase of 64.21% [1] - The cash flow from operating activities was RMB 4.369 billion, up 78.72% year-on-year, indicating strong cash generation capabilities [1] - The basic earnings per share (EPS) for Q1 2024 was RMB 0.16, representing a year-on-year growth of 77.8% [1] Financial Data and Projections - Revenue projections for the upcoming years are as follows: RMB 126.11 billion for 2024, RMB 136.4 billion for 2025, and RMB 147.43 billion for 2026, with year-on-year growth rates of 7.6%, 8.2%, and 8.1% respectively [2] - Net profit projections are RMB 6.183 billion for 2024, RMB 6.504 billion for 2025, and RMB 6.661 billion for 2026, with significant growth expected in 2023 [2] - The projected diluted EPS for 2024, 2025, and 2026 are RMB 0.60, RMB 0.64, and RMB 0.65 respectively, with corresponding P/E ratios of 11.2, 10.7, and 10.4 [2]