Shenergy(600642) 山西证券·2024-05-13 08:30Investment Rating - The report assigns an "Accumulate-A" rating for the company, indicating a positive outlook for its stock performance [2][3]. Core Insights - The company has shown significant improvement in profitability, with a notable increase in net profit and operating income for 2023 and Q1 2024, driven by enhanced profitability in the coal power sector and unexpected growth in investment income [2][3]. - The company is positioned as a leading coal-fired power player in the Yangtze River Delta, with expectations for continued growth across coal, water, and renewable energy sectors, enhancing overall earnings elasticity [3]. Financial Performance Summary - In 2023, the company achieved operating income of 29.142 billion yuan, a year-on-year increase of 3.36%, and a net profit of 3.459 billion yuan, up 219.52% [2]. - For Q1 2024, the company reported operating income of 8.071 billion yuan, a 10.87% increase year-on-year, and a net profit of 1.159 billion yuan, reflecting a 57.96% growth [2]. - The gross margin for 2023 was 18.46%, an increase of 6.5 percentage points year-on-year, with the coal power segment achieving a gross margin of 10.68%, up 10.64 percentage points [2][3]. Future Earnings Projections - The company is projected to have EPS of 0.80, 0.86, and 0.92 yuan for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 10.7, 10.0, and 9.3 [3].