Ge Long Hui·2025-08-21 19:11Core Viewpoint - The company reported a mixed performance for the first half of 2025, with revenue growth driven by increased electricity generation despite declining average on-grid prices for wind and solar energy [1][2]. Financial Performance - In 1H25, the company achieved revenue of 15.66 billion RMB, a year-on-year increase of 3.1% in continuing operations; net profit attributable to shareholders was 3.52 billion RMB, down 14.4% year-on-year [1]. - In Q2 2025, revenue reached 7.52 billion RMB, with a 5.6% increase in continuing operations year-on-year; net profit attributable to shareholders was 1.54 billion RMB, a slight decrease of 0.2% year-on-year [1]. Operational Analysis - The average on-grid electricity prices for wind and solar energy were 422 RMB/MWh and 273 RMB/MWh respectively, reflecting a decrease of 16 RMB/MWh and 5 RMB/MWh year-on-year [1]. - Wind power generation increased by 6.1% and solar power generation surged by 71.4% year-on-year, compensating for the negative impact of declining prices [1][2]. - Wind power sales revenue decreased by 1.6% due to unfavorable wind conditions, while solar power sales revenue increased by 65.6% due to smaller price declines and higher generation growth [1][2]. Capacity and Investment - The installed capacity for wind and solar power increased by 10.8% and 54.8% year-on-year respectively [2]. - Capital expenditures reached approximately 11.8 billion RMB, a decrease of 5.4% year-on-year, primarily due to reduced funding for new energy projects compared to the previous year [2]. Strategic Focus - The company aims to enhance its competitive position in the new energy market by focusing on wind power development, particularly in high-capacity and high-price regions [2]. - A total of 1.24 GW of new development agreements were signed during the period, with wind power accounting for 83.9% of this figure [2]. - The company plans to distribute a mid-term dividend of 0.1 RMB per share (pre-tax) to shareholders, reflecting its commitment to shareholder value [2]. Profit Forecast and Valuation - The company is projected to achieve net profits of 6.97 billion RMB, 7.62 billion RMB, and 8.38 billion RMB for the years 2025 to 2027, with corresponding EPS of 0.83 RMB, 0.91 RMB, and 1.00 RMB [3]. - The current stock price corresponds to a PE valuation of 8x, 7x, and 6x for the years 2025, 2026, and 2027 respectively, maintaining a "buy" rating [3].