The company announced its 2023 results. In 2023, the company achieved revenue of 26.846 billion yuan, up 0.2% year on year; net profit to mother was 4.56 billion yuan, up 14.39% year on year. The total planned profit for 2024 was $6.487 billion. The 2024 plan's net profit attributable to the owners of the parent company was $4.92 billion.

The volume and price of the coal business have risen sharply. In 2023, the company produced 46.55 million tons of raw coal, +1.19% year-on-year, and sold 46.47 million tons of raw coal, +1.04% year-on-year. In terms of interest prices, the company's comprehensive sales price of tons of coal was 196 yuan/ton, +2.51% year-on-year; the cost of a ton of coal was 91 yuan/ton, -0.97% year-on-year. In 2024, it is planned to produce 48 million tons of raw coal and sell 48 million tons of raw coal.

The toughness of the aluminum electrolytic business is highlighted. In 2023, the company produced 875,500 tons of electrolytic aluminum, +1.34% year on year; sales volume of electrolytic aluminum was +1.75%; the price of a ton of aluminum was 16,312 yuan/ton, -6.6% year over year. The cost of a ton of aluminum was 13,783 yuan/ton, -3.39% year over year. In 2024, the company plans to produce 880,000 tons of electrolytic aluminum, and plans to sell 880,000 tons of electrolytic aluminum.

The electricity business has increased significantly. In 2023, the company's electricity generation capacity was 870.49 million kilowatt-hours, +2.47% year over year; electricity sales volume was 816.4.8 million kilowatt-hours, +5.62% year over year, feed-in price 0.3387 yuan/kilowatt-hour, -3.84% year over year, electricity sales cost 0.2232 yuan/kwh, -0.57% year over year. In 2024, the company plans to generate 26.336 billion kilowatt-hours (including 13.267 billion kilowatt-hours from its own power plants), and plans to sell 12.33 billion kilowatt-hours of electricity.

The integrated layout of the main business is worth looking forward to. The three major businesses go hand in hand. The company currently has a coal production capacity of 48 million tons/year, and is the largest coal producer in the Northeast region; the company has built 1.8 million kilowatt thermal power installations, 900,000 kilowatt wind power installations, 150,000 kilowatt photovoltaic installations, and the Huolin River circular economy demonstration project with 860,000 tons of electrolytic aluminum production capacity and supporting facilities. It is the world's first “coal-electricity-aluminum” circular economy green industry cluster, according to the “coal-electricity-aluminum” circular economy green industry cluster, according to the “coal-electricity-aluminum” circular economy green industry cluster, according to the “coal-electricity-aluminum” circular economy green industry cluster, according to the “coal-electricity-aluminum” circular economy green industry cluster. The idea has realized the industrial chain centered on traditional coal and electricity to “coal electricity+ “Green energy base+industrial cluster” industrial chain transformation and upgrading. As of the 2023 annual report, the company has installed 1.2 million kilowatts of thermal power and 4,552 million kilowatts of new energy.

Investment advice. We expect the company's net profit to be 5.6 billion yuan, 6 billion yuan, and 6.5 billion yuan respectively in 2024-2026, corresponding to PE 7.6, 7.0, and 6.5 billion, respectively.

Risk warning: Asset injections fell short of expectations, aluminum prices fell sharply, and electricity generation fell short of expectations.