无惧来水压力，业绩加速增长

Investment Rating - The investment rating for Huaneng Hydropower is "Buy" and is maintained [5]. Core Views - In 2023, the company managed to achieve a revenue of 23.461 billion yuan, a slight decrease of 0.51% year-on-year, while net profit attributable to shareholders reached 7.638 billion yuan, reflecting a growth of 5.58% [5][6]. - The company faced challenges due to reduced water inflow, resulting in a 4.04% decline in total power generation to 107.062 billion kWh. However, the average settlement price of electricity increased by 2.96% to 0.2476 yuan/kWh, which helped mitigate the impact of reduced generation [5][6]. - In Q1 2024, the company reported a revenue of 4.420 billion yuan, up 3.58% year-on-year, and a net profit of 1.065 billion yuan, marking a significant increase of 17.25% [5][6]. Summary by Sections Financial Performance - In 2023, the company achieved a gross profit of 13.224 billion yuan, with a gross margin of 56.36%. The financial expenses were optimized to 2.730 billion yuan, a decrease of 14.14% year-on-year [5][6]. - For Q1 2024, the gross margin improved to 51.72%, with financial expenses further reduced to 0.682 billion yuan, down 5.80% year-on-year [6]. Future Outlook - The company has adjusted its earnings forecast, expecting EPS of 0.49 yuan, 0.53 yuan, and 0.60 yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 19.58, 18.03, and 15.93 [6].