ZZEPC(600023) 国联证券·2024-09-05 05:30Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company's revenue for H1 2024 was CNY 40.165 billion, a decrease of 3.75% year-on-year, while the net profit attributable to shareholders was CNY 3.927 billion, an increase of 41.33% year-on-year [2][5] - The decline in coal prices has improved profit margins, with a gross margin of 11.03% and a net margin of 11.06% for H1 2024, both showing significant year-on-year increases [5] - The company is expected to see revenue growth from CNY 97.207 billion in 2024 to CNY 103.743 billion in 2026, with a compound annual growth rate (CAGR) of 11.8% [5][6] Summary by Sections Financial Performance - In H1 2024, the company achieved a total power generation of 75.47 billion kWh, a year-on-year increase of 0.77% [5] - The company’s operating costs decreased by 8.48% year-on-year, contributing to improved profitability [5] - The company’s investment income for H1 2024 was CNY 2.612 billion, an increase of CNY 0.092 billion year-on-year [5] Revenue and Profit Forecast - The forecasted revenues for 2024, 2025, and 2026 are CNY 97.207 billion, CNY 101.008 billion, and CNY 103.743 billion, respectively, with year-on-year growth rates of 1.28%, 3.91%, and 2.71% [6] - The net profit attributable to shareholders is projected to be CNY 8.088 billion in 2024, CNY 8.490 billion in 2025, and CNY 9.121 billion in 2026, with growth rates of 24.06%, 4.97%, and 7.43% respectively [6] Valuation Metrics - The earnings per share (EPS) for 2024, 2025, and 2026 are expected to be CNY 0.60, CNY 0.63, and CNY 0.68, with price-to-earnings (P/E) ratios of 10.3, 9.8, and 9.2 respectively [6] - The company’s price-to-book (P/B) ratio is projected to decrease from 1.1 in 2024 to 1.0 in 2026 [6]