Changjiang Securities·2025-07-23 11:35Investment Rating - The report assigns a "Buy" rating to the company [11] Core Views - The company is expected to benefit significantly from the decline in coal prices since 2025, which will improve fuel costs and support profitability through capacity pricing policies [2][9] - The company's fire power assets are primarily located in northern regions, which exhibit stronger price resilience, and this structural advantage is likely to persist [2][7] - The diversification into clean energy is expected to smooth out cyclical fluctuations and contribute to growth momentum [2][9] Summary by Sections Historical Review - The company's stock performance weakened from 2014 to 2021, but began to recover post-2021 due to the "dual carbon" goals and deepening electricity reforms [5][19] - The core issues affecting performance included a misfocused transformation strategy and the burden of low-efficiency assets [5][24] Group Fire Power Integration and Clean Energy Diversification - The company serves as the final integration platform for the fire power business under the parent group and is steadily advancing towards a green and low-carbon transformation [6][28] - The fire power business remains a crucial support for the company, with clean energy performance gradually expanding to mitigate the adverse effects of coal price fluctuations [6][9] Asset Layout and Efficiency - The company's fire power assets are concentrated in the northern regions, where electricity prices have shown more resilience compared to southern regions [7][43] - The company has improved its coal consumption efficiency, reducing it from 293.17 grams/kWh in 2020 to 288.47 grams/kWh in 2024, placing it at an industry-leading level [7][51] Clean Energy Contribution - The company has a diversified clean energy layout, focusing on wind and solar power, which has led to significant profit contributions [8][30] - The clean energy segment is expected to continue expanding, with wind and solar power accounting for 36.51% of total profits in 2024 [6][38] Investment Recommendations - The company is projected to have an EPS of 0.34, 0.36, and 0.38 for 2025-2027, with corresponding P/E ratios of 11.59, 10.66, and 10.35, justifying the "Buy" rating [9][11]