doublebonusdeuceswildstrategy| Zhejiang Energy Power (600023): Thermal power profits increase, shareholding in nuclear power stabilizes performance

Event: the company released its annual report for 2023 and quarterly report for 2024. The company achieved revenue of 96 billion yuan in 2023, an increase of 19% over the same period last year.Doublebonusdeuceswildstrategy.7%DoublebonusdeuceswildstrategyThe net profit returned to the mother was 6.52 billion yuan, an increase of 457% over the same period last year. 24Q1 achieved a revenue of 20 billion yuan, an increase of 13.5% over the same period last year, and a net profit of 1.82 billion yuan, an increase of 79.6% over the same period last year. In 2023, the company pays a cash dividend of 2.5 yuan (including tax) for every 10 shares, with a cash dividend ratio of 51.4%. Tight supply and demand in the province + downward fuel costs, power performance repair. In 2023, the company's electric power business achieved revenue of 68.9 billion yuan, an increase of 7.9% over the same period last year, and a gross profit margin of 7.4%, an increase of 15.75pp over the same period last year. Benefiting from the high demand for electricity in Zhejiang Province, the company completed 154.5 billion kilowatt hours of electricity, an increase of 7.5% over the same period last year, and the number of hours of coal power utilization reached 5533 hours, an increase of 123 hours over the same period last year. The structure of coal supply and demand is loose throughout the year in 2023. According to Baichuan Yingfu data, the average price of Q5500 coal in Qinhuangdao in 2023 was 980.8 yuan / ton, down 279 yuan / ton compared with the same period last year. As of April 30 of this year, Qinhuangdao Q5500 coal price is 840 yuan / ton, coal price is low, the company's fuel cost end is expected to continue to improve. The income of participating in nuclear power has steadily increased. In 2023, the company achieved a net investment income of 4.61 billion yuan, of which the investment income in joint ventures / joint ventures was 4.24 billion yuan, an increase of 45% over the same period last year. 24Q1 achieved a net investment income of 1.23 billion yuan, an increase of 20.3% over the same period last year, and the company's performance is expected to continue to grow. A high proportion of cash dividends are paid to shareholders. In 2023, the company will distribute a cash dividend of 2.5 yuan (including tax) to all shareholders for every 10 shares, and it is expected to distribute a total cash dividend of 3.35 billion yuan (including tax), with a cash dividend ratio of 51.4%. Based on the share price on April 30, the dividend yield will reach 4.0%. Since 2017, the company's dividend ratio has been maintained at more than 50%, attaching importance to shareholder returns. Profit forecast and investment advice. It is estimated that the 24-26 net profit of the company is 7.72 billion yuan / 8.71 billion yuan / 9.57 billion yuan respectively, corresponding to the EPS of 0.58, 0.65 and 0.71 yuan respectively, maintaining the "buy" rating. Risk hint: the risk of fluctuation of coal price and electricity price and the risk that the development of new energy is less than expected. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.