Datang Power(601991) 华龙证券·2024-03-28 16:00Investment Rating - The report assigns a "Buy" rating to Datang Power (601991 SH) for the first time [1] Core Views - Datang Power achieved a turnaround in 2023 with revenue of 122 404 billion yuan, up 4 77% YoY, and net profit attributable to shareholders of 1 365 billion yuan, compared to a loss of 410 million yuan in 2022 [1] - Q4 2023 saw revenue of 31 785 billion yuan, up 7 46% YoY, but a net loss of 1 470 billion yuan due to asset impairment losses of 1 356 billion yuan [1] - Coal power segment still has room for recovery, with coal power fuel costs decreasing by 27 21 yuan/MWh YoY [1] - New energy projects under construction and approved reached 12 8GW, with a strong project pipeline [1] Business Performance - In 2023, coal power, gas power, wind power, solar power, and hydro power segments reported profits of -133 million yuan, 392 million yuan, 2 556 billion yuan, 480 million yuan, and 1 383 billion yuan respectively [1] - Electricity sales reached 259 4 billion kWh, up 5 06% YoY, with thermal power, wind power, hydro power, and solar power sales growing by 6 21%, 16 53%, -10 30%, and 60 79% respectively [1] - Average on-grid tariff increased by 5 62 yuan/MWh to 466 41 yuan/MWh [1] Financial Projections - Revenue is expected to grow to 1 240 341 billion yuan in 2024, 1 269 916 billion yuan in 2025, and 1 304 175 billion yuan in 2026 [2] - Net profit attributable to shareholders is projected to reach 4 111 billion yuan in 2024, 5 064 billion yuan in 2025, and 6 010 billion yuan in 2026 [2] - ROE is forecasted to improve from 1 85% in 2023 to 5 28% in 2024, 6 14% in 2025, and 6 86% in 2026 [2] Valuation Metrics - P/E ratio is expected to decline from -185 71 in 2023 to 12 88 in 2024, 10 45 in 2025, and 8 81 in 2026 [2] - P/B ratio is projected to decrease from 0 72 in 2023 to 0 68 in 2024, 0 64 in 2025, and 0 60 in 2026 [2]