DHEP(SH:600744) Chang Jiang Shang Bao·2025-07-08 00:33Core Viewpoint - The stock price of Huayin Power has surged significantly due to increased electricity demand during the summer peak and improved financial performance, with a notable rise in net profit expectations for the first half of 2025 [1][4][6]. Stock Performance - From July 1 to July 7, Huayin Power's stock recorded "4 limit-ups in 5 trading days," with a total increase of 48.56% during this period [3][4]. - Year-to-date, the stock price has risen from 3.11 CNY per share at the beginning of 2025 to 6.7 CNY per share by July 7, representing a 115.43% increase [1]. Financial Performance - Huayin Power expects to achieve a net profit attributable to shareholders of 180 million to 220 million CNY for the first half of 2025, an increase of 175 million to 215 million CNY compared to the same period last year [1][4]. - The company's net profit for the first half of 2024 was only 5 million CNY, indicating a potential year-on-year growth rate of 35 to 43 times [4]. - In Q1 2025, Huayin Power reported a revenue of 2.307 billion CNY, a year-on-year increase of 5.06%, and a net profit of approximately 75.67 million CNY, up 894.61% year-on-year [4]. Historical Context - Since 2008, Huayin Power has faced continuous pressure on its performance, with losses in most years except for a small profit in 2016 [5]. - In 2024, the company reported a revenue of 8.348 billion CNY, a decrease of 16% year-on-year, and a net loss of 113 million CNY [5]. Strategic Initiatives - The company is focusing on optimizing its energy structure to reduce electricity costs, with a shift towards renewable energy sources [7][9]. - Huayin Power has been actively investing in renewable energy projects, with plans to invest approximately 1.398 billion CNY in wind and solar projects [8]. - The company aims to expand its renewable energy capacity, having achieved a total installed capacity of over 1.9 million kW by the end of 2024 [7].