SDIC Power(SH:600886) Xin Lang Cai Jing·2025-09-09 06:31Core Insights - Hydropower profits remain stable while thermal and renewable energy profits decline [1][2] - The company reported a revenue of 25.697 billion yuan for H1 2025, a decrease of 5.18% year-on-year, with a net profit of 3.795 billion yuan, an increase of 1.36% year-on-year [1] - In H1 2025, hydropower contributed a net profit of 2.876 billion yuan, up 11.1% year-on-year, while thermal power's net profit was 481 million yuan, down 18.1% year-on-year [1] Revenue and Profit Analysis - The company experienced a 10.3% increase in hydropower generation due to high reservoir levels, with Yalong River's generation up 12.7% and revenue up 7.0% [2] - The average electricity price for thermal power decreased by 0.9 cents, leading to a decline in profits, particularly from the Qinzhou power plant [2] - The company has ongoing hydropower projects in Indonesia and Yalong River, totaling 4.23 GW, indicating long-term growth potential [2] Profit Forecast and Investment Recommendations - The projected net profits for the company from 2025 to 2027 are 7.09 billion, 7.84 billion, and 8.41 billion yuan, respectively, with corresponding PE ratios of 16.0, 14.5, and 13.5 [2] - The company is expected to maintain a 55% dividend payout ratio from 2024 to 2026, with a target price of 15.94 yuan per share based on an 18x PE valuation for 2025 [3]