发电量高增，盈利能力显著提升

Investment Rating - The report assigns an "Accumulate-A" rating to the company, indicating a positive outlook for its stock performance in the next 6-12 months [1][2]. Core Insights - The company has shown significant improvement in its performance for the year 2023 and the first quarter of 2024, with a notable increase in revenue and profitability driven by higher power generation and cost improvements [1][2]. - The expected earnings per share (EPS) for 2024-2026 are projected to be 0.57, 0.61, and 0.70 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 10.7, 10.0, and 8.8 times based on the closing price of 6.14 yuan on May 8, 2024 [2]. Financial Performance Summary - In 2023, the company achieved a revenue of 95.975 billion yuan, a year-on-year increase of 19.68%, and a net profit of 6.520 billion yuan, marking a turnaround from losses [1][3]. - The first quarter of 2024 saw revenues of 20.024 billion yuan, up 13.45% year-on-year, and a net profit of 1.815 billion yuan, reflecting a 79.62% increase [1][3]. - The company's gross profit margin improved to 9.34% in the first quarter of 2024, an increase of 5.03 percentage points year-on-year, primarily due to cost reductions in upstream raw materials [1][3]. Market Dynamics - The company is positioned as a leading player in the thermal power sector in Zhejiang Province, benefiting from a significant increase in local electricity demand, which grew by 6.8% in 2023 and 12.2% in the first quarter of 2024 [1][2]. - The commissioning of new power generation units is expected to further enhance the company's performance, with the total installed capacity in the province increasing to 57.6% due to the completion of new projects [1][2]. Future Outlook - The report anticipates continued high growth in electricity demand driven by economic expansion and the development of new industries in Zhejiang Province, including 5G, new energy vehicles, and photovoltaic industries [1][2]. - The acquisition of a 9.7% stake in Zhonglai Co., which specializes in photovoltaic components, is expected to provide new growth momentum for the company [1][2].