Jinwu Financial News | According to First Shanghai Research and Development, in 2023, China Electric Power (02380) achieved revenue of 44.262 billion yuan, an increase of 1.3% over the previous year, and profit to mother of 2.66 billion yuan, an increase of 7.2% over the previous year. Net profit split from division to mother: coal power sector profit of 928 million yuan, wind power profit of 2,222 million yuan, photovoltaic profit of 999 million yuan, hydropower loss of 532 million yuan. The company plans to pay a dividend of RMB 0.132, increasing the dividend ratio to 61%, and maintaining a high dividend ratio.
According to the bank, the company's profit growth in 2024 is highly certain. Group project injections will fully contribute profits, and the return of self-invested projects will increase under the current low cost trend; hydropower profits will benefit from the restoration of incoming water, and coal power will benefit from maintaining leading cost control, and the implementation of a superimposed capacity electricity price policy.
The bank expects the company's net profit to be 45/61.76 billion yuan in 2024-2026, an increase of 70/35/ 25% over the previous year. Due to the decline in electricity prices due to the increase in the share of new energy consumption and market-based transactions, the bank lowered the valuation of the NEV sector to 9XPE. The company's reasonable market value in 2024 was HK$57.4 billion, corresponding target price of HK$4.64. The coal/hydropower/new energy sector was valued at 1XPB/8XPE/9XPE respectively, with 44% room for increase compared to current prices, maintaining the purchase rating.