Xin Lang Cai Jing·2025-09-23 08:32Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to falling electricity prices and increased tax expenses, despite a slight increase in nuclear power generation revenue [1][2][3]. Financial Performance - In H1 2025, the company achieved operating revenue of 39.167 billion yuan, a year-on-year decrease of 0.53% [1] - The net profit attributable to shareholders was 5.952 billion yuan, down 16.30% year-on-year [1] - The basic earnings per share were 0.12 yuan, reflecting a 16.31% decline compared to the previous year [1] - The return on equity (ROE) was 4.88%, a decrease of 1.19 percentage points year-on-year [1] Business Segments - Nuclear power generation revenue in H1 2025 was 30.658 billion yuan, a slight increase of 0.93% year-on-year, supported by a 6.93% increase in electricity generation [2] - The construction and design services segment generated revenue of 7.612 billion yuan, down 4.83% year-on-year [2] - The average market electricity price decreased by approximately 8.23% compared to the same period in 2024, significantly impacting profitability [2][3] Profitability Challenges - The gross margin for the core electricity sales business fell by 5.44 percentage points to 43.29% due to declining electricity prices [3] - Income tax expenses increased by 17.91% to 2.490 billion yuan, influenced by the expiration of tax incentives for certain nuclear power units [3] - The combination of these factors led to a temporary decline in the company's profitability [3] Project Development - The company has a robust pipeline of nuclear projects, with 28 operational units and 20 under construction, providing a solid foundation for long-term growth [3] - Recent approvals for new projects, including the Taishan Phase II and Fangchenggang Phase III, enhance the company's project portfolio [3] Strategic Acquisitions - The company plans to acquire an 82% stake in Huizhou Nuclear Power for 9.375 billion yuan, which includes several in-progress projects expected to contribute to future revenue [4] - This acquisition is expected to clarify the company's long-term growth trajectory by expanding its project base [4] Industry Outlook - The nuclear power industry is expected to grow, driven by high utilization hours and favorable pricing trends, despite short-term pressures from electricity price declines [5] - The company forecasts revenues of 86.639 billion yuan, 90.498 billion yuan, and 96.507 billion yuan for 2025-2027, with corresponding net profits of 9.978 billion yuan, 10.431 billion yuan, and 11.429 billion yuan [5]