TGWC(SH:600116) Xin Lang Cai Jing·2025-08-25 12:27Core Viewpoint - The company reported a significant decline in both revenue and net profit for the first half of 2025, primarily due to challenges in its power generation business and various operational factors [1][3]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 4.896 billion yuan, a year-on-year decrease of 6.10% [1]. - The net profit attributable to shareholders was 48 million yuan, down 79.07% year-on-year [1][3]. - The company's power business realized an operating profit of 171 million yuan, a decline of 44.87% year-on-year, indicating short-term pressure on profitability [2]. Group 2: Power Generation and Sales - The company's self-generated hydropower output was 967 million kilowatt-hours, a decrease of 23.05% year-on-year due to reduced water inflow in the river basin [2]. - Despite the challenges in self-generated power, the total sales volume reached 6.802 billion kilowatt-hours, an increase of 2.66% year-on-year, marking a historical high for the same period [2]. - The average selling price of electricity was 0.4877 yuan per kilowatt-hour, a slight decrease of 0.0033 yuan per kilowatt-hour year-on-year, indicating stable pricing [2]. Group 3: Segment Performance - The comprehensive energy segment achieved an operating profit of 62 million yuan, a year-on-year increase of 21.83%, driven by stable contributions from specific projects [3]. - The manganese and trading business reported a loss of 48 million yuan, although this was an improvement compared to the previous year, attributed to a slight increase in electrolytic manganese prices and higher ore extraction [3]. - Multiple factors negatively impacted overall performance, including losses in design and maintenance services and a significant decrease in other income and investment income [3]. Group 4: Future Growth Potential - The company is making significant progress in expanding its self-generated power capacity, with several projects nearing completion or in the operational phase [4]. - The comprehensive energy business continues to expand, with major projects nearing completion and new renewable energy initiatives being developed [4]. - The company maintains a solid growth outlook, supported by a rich pipeline of projects that will contribute to long-term growth [4]. Group 5: Investment Outlook - Based on the latest financial data, the company is projected to have earnings per share (EPS) of 0.12 yuan, 0.20 yuan, and 0.25 yuan for 2025-2027, with corresponding price-to-earnings (PE) ratios of 57.72, 33.85, and 27.67 [4]. - The investment recommendation remains "buy" based on the anticipated recovery and growth potential [4].