POWERCHINA Ltd(SH:601669) Soochow Securities·2025-05-06 08:54Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a stable revenue growth with a year-on-year increase of 1.6% in Q1 2025, but the net profit attributable to shareholders decreased by 12.0% year-on-year [7] - The gross margin has come under pressure, declining by 1.0 percentage points to 10.8% [7] - The company is expected to benefit from increased domestic investment in major water conservancy and hydropower infrastructure, as well as the continuous expansion of its new energy investment and operation business [7] Summary by Sections Financial Performance - In Q1 2025, the company achieved total revenue of 142.736 billion yuan and a net profit of 2.636 billion yuan [7] - The operating cash flow showed a net outflow of 40.519 billion yuan, which is an increase in outflow compared to the previous year [7] - The asset-liability ratio stood at 79.6%, reflecting a slight increase of 1.4 percentage points year-on-year [7] Order Intake - New contracts signed in Q1 2025 amounted to 299.3 billion yuan, a decrease of 9.6% year-on-year [7] - The energy and water resource sectors showed strong performance, with new contracts in hydropower and wind power increasing by 20.2% and 67.3% respectively [7] Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025-2026 is 12.5 billion yuan and 13.2 billion yuan respectively, with a P/E ratio of 6.5 and 6.2 times [7] - The company is expected to maintain a "Buy" rating due to the formation of a second growth curve from its new energy investment and operation business [7]