Jinwu Financial News | According to Guoxin Securities Research, Huaneng International Power Co., Ltd. (00902) had revenue of 254.397 billion yuan in 2023, +3.11% compared with the same period last year. Net profit attributable to equity holders of the Company was 8.357 billion yuan (loss of 8.027 billion yuan for the same period last year). The sharp increase in net profit was mainly due to a decrease in fuel costs, an increase in power generation, and a significant increase in business profits in Singapore.
According to the bank, in 2023, the company's fuel costs decreased by 8.17% from 17.507 billion yuan the previous year to 156.569 billion yuan, and the power generation capacity of the company's domestic power plants increased 5.33% year on year. Net profit attributable to equity holders from operations in China and Singapore was 4.537 billion yuan and 3.65 billion yuan respectively, an increase of approximately 143.44 billion yuan and 2,057 billion yuan respectively over the previous year. The bank expects that in 2024, with the release of production capacity in the coal industry, the coal supply and demand pattern will be relaxed, there is still room for the company's fuel costs to decline, and the company's profit level may increase markedly.
According to the bank, as of the end of '23, the company's controllable installed capacity was 135.66 GW, of which the installed capacity of coal engines, gas engines, wind power, and solar energy was 93.28, 13.23, 15.51, and 13.1 GW, respectively. Approximately 10 GW of installed capacity was added throughout the year, and 9.35 GW of low-carbon clean energy installed capacity was added. Low-carbon clean energy accounted for about 31.24% of the installed capacity, an increase of 5.17 percentage points over the previous year. It is expected that as the cost of new energy installed equipment falls, it will continue to drive the rapid growth of the company's new energy installed equipment and further enhance the company's profit level.
The bank estimates that the company's net profit for 24-26 will be 134.2/151.8/16.83 billion yuan, respectively, with corresponding earnings per share of 1.03/1.08/1.18 yuan, respectively. The price-earnings ratios corresponding to the current stock price are 5.43/4.8/4.33X, respectively. Maintain a “buy” investment rating and give the company a target price of HK$7.80, corresponding to PE7.0X in 2023.