BJP(SH:600578) Xin Lang Cai Jing·2025-06-15 06:33Core Viewpoint - The research highlights the resilience of electricity prices in northern regions of China, particularly in the context of ongoing electricity market reforms and the increasing capacity of renewable energy sources. This resilience is attributed to a unique supply-demand balance, which allows for better profitability recovery among northern thermal power companies compared to the industry average [1]. Group 1: Industry Overview - The national electricity market is experiencing downward pressure on prices due to market reforms and the expansion of renewable energy installations [1]. - Northern regions show a smaller decline in electricity prices compared to the national average, with some areas even experiencing price increases [1]. - The continuous decline in coal prices has alleviated cost pressures for the thermal power industry, enhancing profitability for northern thermal power companies [1]. Group 2: Company Analysis - Jingneng Power - Jingneng Power, the first publicly listed power company in the capital, has seen stable growth in profitability, primarily driven by its coal-fired power business [2]. - The company benefits from its coal resources located in Inner Mongolia and Shanxi, with a steady increase in installed capacity over the years [2]. - Jingneng Power's electricity supply is mainly directed to the Beijing-Tianjin-Tangshan grid, which has a high dependency on external power supply, supporting price resilience despite national price pressures [2]. Group 3: Financial Performance and Shareholder Returns - The company has a strong track record of returning value to shareholders, having distributed cash dividends 24 times since its listing, totaling over 10.2 billion yuan [3]. - From 2023 to 2025, the company plans to distribute an average of no less than 70% of its distributable profits as cash dividends, with a projected dividend yield exceeding 9% by 2025 [3]. - Profit forecasts indicate significant growth, with expected net profits of 3.73 billion, 4.23 billion, and 4.47 billion yuan for 2025-2027, representing year-on-year increases of 116%, 13%, and 6% respectively [3].