Xin Lang Cai Jing·2025-10-29 00:27Core Viewpoint - The company's Q3 2025 performance aligns with expectations, showing a decline in revenue but an increase in net profit, driven by effective cost control and improved gross margin [1][2]. Financial Performance - The company reported Q3 2025 revenue of 35.92 billion yuan, a year-on-year decrease of 10.9% - Net profit attributable to shareholders was 2.533 billion yuan, reflecting a year-on-year increase of 20.3% - For the first three quarters, total profit reached 6.44 billion yuan, up 15.9% year-on-year, meeting expectations [1]. Cost Management - The company achieved a significant recovery in pre-tax profit per kilowatt-hour due to effective cost control, with a year-on-year increase of over 60% to 0.047 yuan/kWh - The gross margin improved by 4.8 percentage points to 14.5%, primarily driven by a significant decrease in the price of coal [1]. Investment Income - Investment income in Q3 dropped significantly to 600 million yuan, a year-on-year decrease of 32% - The decline was attributed to lower coal prices, weaker wind resource conditions, and a reduced stake in Huadian New Energy following its IPO [1]. Cash Flow and Dividend Capacity - Operating cash flow for the first three quarters increased by 51.5% year-on-year, reaching 22.98 billion yuan - The company's debt-to-asset ratio has decreased to 60.4%, indicating improved financial health and enhanced dividend capacity [2]. Profit Forecast and Valuation - The profit forecast for 2025-26 remains unchanged, with A-shares trading at 10.0x/9.9x P/E and H-shares at 7.6x/7.4x P/E - The target price for A-shares is maintained at 7.32 yuan, while the target price for H-shares is raised by 20% to 5.63 HKD, reflecting an attractive dividend yield [3].