GDPD(SH:600795) Great Wall Securities·2024-06-14 03:01Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first rating given [1]. Core Views - The company, Guodian Power (600795.SH), leads the industry in coal-fired power profitability, with significant growth potential from hydropower, wind, and solar energy [1][2]. - The company benefits from its coal-electricity integration advantages, showcasing strong profitability in thermal power generation [1][2]. - The report anticipates continued revenue growth driven by both traditional and renewable energy sources, with a projected increase in net profit over the next few years [2][3]. Financial Summary - Revenue and Profitability: The company's revenue for 2023 is projected at 180.99 billion yuan, with a year-on-year decrease of 7.0%. However, net profit is expected to rise to 5.609 billion yuan, reflecting a significant year-on-year increase of 98.8% [1][18]. - Earnings Per Share (EPS): The EPS is forecasted to grow from 0.31 yuan in 2023 to 0.44 yuan in 2024, indicating a positive trend in profitability [1]. - Return on Equity (ROE): The ROE is expected to improve from 10.0% in 2023 to 12.3% in 2024, showcasing enhanced efficiency in generating profits from equity [1]. Operational Insights - Thermal Power Capacity: The company operates a thermal power capacity of 72.79 GW, ranking second among listed companies, with a high proportion of efficient coal-fired units [1][2]. - Hydropower Development: The company has a total hydropower capacity of 14.95 GW, primarily located in the Dadu River basin and the Kaitu River basin, with ongoing projects expected to improve water consumption issues [2][3]. - Renewable Energy Growth: The company has seen substantial growth in its renewable energy projects, with wind and solar capacity increasing by 24.6% and 174.73% respectively in 2023 [2][3]. Market Position - Industry Leadership: Guodian Power is positioned as a core platform for conventional energy generation under the State Energy Group, focusing on integrating coal and renewable energy sources [15][27]. - Revenue Distribution: In 2023, thermal power accounted for 85% of the company's revenue, while hydropower and renewable energy contributed 7% and 6% respectively [29][33]. - Geographical Revenue Breakdown: The company generates the majority of its revenue from the East China region, which accounted for 62.2% of total revenue in 2023 [33].