Xin Lang Cai Jing·2025-09-04 06:38Core Viewpoint - The company reported a slight decline in revenue for H1 2025, but a significant increase in net profit, driven by growth in renewable energy generation and cost reductions [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 57.193 billion yuan, a year-on-year decrease of 1.93%, while net profit attributable to shareholders was 4.579 billion yuan, an increase of 47.35% [1]. - For Q2 2025, revenue was 26.987 billion yuan, down 2.14%, with net profit at 2.341 billion yuan, up 31.78% [1]. - The average on-grid electricity price decreased by approximately 3.95% in H1 2025, but the total on-grid electricity volume increased by 1.30% to 123.9934 billion kWh [1]. Segment Performance - The on-grid electricity volume by source in H1 2025 showed the following year-on-year changes: coal machines -1.65%, gas machines -8.41%, hydropower +1.55%, wind power +31.27%, and solar power +36.35% [1]. - The company’s total profit for H1 2025 was 7.284 billion yuan, a year-on-year increase of 36.14%, marking the best performance for the same period in company history [2]. - Profit contributions by segment in H1 2025 were as follows: coal machines (including heat) 3.148 billion yuan, gas machines (including heat) 0.129 billion yuan, hydropower 1.210 billion yuan, wind power 1.938 billion yuan, and solar power 0.404 billion yuan [2]. Cost and Profitability - The company’s operating costs decreased by 5.54% year-on-year, leading to a gross margin increase of 3.12 percentage points to 18.55% [2]. - Financial expenses were reduced by 14.06% year-on-year, further enhancing profitability [2]. Dividend Announcement - In August 2025, the company announced its first interim dividend plan, proposing a cash dividend of 0.055 yuan per share, totaling 1.018 billion yuan, which represents approximately 26.7% of net profit attributable to shareholders [2]. Profit Forecast and Valuation - The company is expected to achieve net profits of 6.416 billion yuan, 7.524 billion yuan, and 8.619 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 42.38%, 17.27%, and 14.56% [3]. - As of September 1, 2025, the corresponding price-to-earnings ratios (PE) are projected to be 10.36, 8.83, and 7.71 times for the respective years [3].