XINJI ENERGY(601918) 国海证券·2024-03-20 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) as of March 21, 2024 [15][19]. Core Views - The report highlights that the company achieved a revenue of 12.84 billion yuan in 2023, a year-on-year increase of 7.0%, and a net profit attributable to shareholders of 2.11 billion yuan, up 1.6% year-on-year [3]. - The company is expected to benefit from its high long-term contract coal ratio and improved coal quality, which mitigates the impact of market coal price fluctuations [5][19]. - The report anticipates a steady increase in power generation capacity, with a projected output of 11.5 billion kWh in 2024, reflecting a commitment to expanding its integrated coal and power operations [7][19]. Summary by Sections Financial Performance - In 2023, the company reported a basic earnings per share (EPS) of 0.81 yuan, a 1.5% increase year-on-year, and a weighted average return on equity (ROE) of 16.8%, down 2.8 percentage points from the previous year [3][20]. - The fourth quarter of 2023 saw a revenue of 3.15 billion yuan, a decrease of 8.1% quarter-on-quarter but an increase of 1.9% year-on-year [4]. Coal Business - The company produced 19.37 million tons of commercial coal in 2023, a year-on-year increase of 5.2%, with sales reaching 19.69 million tons, up 8.7% year-on-year [5]. - The average selling price of coal remained stable at 585 yuan per ton, reflecting a 0.3% year-on-year increase despite a general market price decline [5]. - The total cost per ton of coal rose to 308 yuan, a 12.1% increase year-on-year, primarily due to rising labor and electricity costs [5]. Power Generation Business - The company generated 10.39 billion kWh of electricity in 2023, a decrease of 2.7% year-on-year, with an average on-grid electricity price of 0.4109 yuan per kWh, down 0.3% year-on-year [7]. - The report projects a significant increase in power generation capacity, with plans for new power plants that will enhance the company's self-sufficiency in coal supply [19]. Future Outlook - The company is expected to see net profits of 2.35 billion yuan in 2024, representing a 12% year-on-year growth, with EPS projected to rise to 0.91 yuan [20]. - The anticipated increase in integrated operations and stable coal quality is expected to enhance profitability and reduce earnings volatility [19].