Ge Long Hui·2025-09-23 05:54Core Viewpoint - Dongfang Electric achieved a net profit attributable to shareholders of 1.91 billion yuan in H1 2025, representing a year-on-year increase of 12.9% [1] - The company experienced a net profit of 760 million yuan in Q2 2025, showing a year-on-year decrease of 3.8% [1] Financial Performance - Q2 2025 saw significant improvements in gross margin and expense ratio, although asset impairment, fair value changes, and income tax impacted overall performance [1] - Revenue growth was observed across major power equipment, with coal and wind power gross margins increasing year-on-year [1] Market Trends - Renewable energy equipment exhibited the fastest growth, likely due to a substantial increase in industry-wide wind power bidding and the peak of pumped storage bidding [1] - Clean and efficient energy equipment remained stable year-on-year, indicating that coal power equipment demand has not significantly declined, suggesting potential for sustained coal power demand exceeding market expectations [1] Future Outlook - The company has a robust order backlog, with expectations for a peak in coal and nuclear power deliveries in 2025, which could provide significant performance elasticity [1] - Future contributions to performance are anticipated from pumped storage business, and there is potential for improvement in wind power profit margins, maintaining a "buy" rating [1]