Ge Long Hui·2025-09-19 04:10Core Viewpoint - The company is expected to enhance its performance stability in the future due to the imminent integration of hydropower assets, despite facing short-term challenges from fluctuating water inflow and market electricity prices [1][3]. Financial Performance - In the first half of 2025, the company's total revenue was 23.86 billion RMB, a year-on-year decrease of 9.9%, while EBITDA reached 15.5 billion RMB, an increase of 5.6%. The profit attributable to equity holders was 2.84 billion RMB, up 1.2% year-on-year [1]. - The profit breakdown by segment includes 0.92 billion RMB from thermal power, 0.37 billion RMB from hydropower, 1.32 billion RMB from wind power, and 0.45 billion RMB from solar power. The net profit attributable to ordinary shareholders was 2.59 billion RMB, reflecting a 0.7% year-on-year increase [1]. Operational Performance - The decline in coal power sales was primarily due to the impact of the exit of Pingwei Power Plant, although the average fuel cost decreased by 14.4% year-on-year, resulting in positive profit growth [2]. - Wind power performance improved with an average utilization hour increase of 56 hours to 1,122 hours, aided by contributions from offshore wind projects. However, solar power sales and profits decreased due to reduced average grid prices from market transactions [2]. - Hydropower faced challenges with a year-on-year decrease in rainfall, leading to a reduction in utilization hours by 434 hours to 1,387 hours, which negatively impacted revenue and profits [2]. - The company's installed capacity reached 53.9 GW by the end of the first half of 2025, a year-on-year increase of 11.6%, with clean energy accounting for 81.8% of the total [2]. Asset Integration - The company is undergoing a business restructuring to clarify the positioning of its listed subsidiaries, with plans to inject hydropower assets into Yuanda Environmental Protection, which will focus on hydropower operations. This move is expected to significantly enhance the company's profits [3]. - The company maintains a target price of 4.73 HKD with a buy rating, anticipating improved earnings stability from balanced development across various power generation forms despite short-term market fluctuations [3]. - Revenue projections for 2025-2027 are adjusted to 50.6 billion RMB, 53.4 billion RMB, and 56.3 billion RMB, with net profits for ordinary shareholders estimated at 3.9 billion RMB, 4.3 billion RMB, and 4.6 billion RMB respectively [3].