Huafu Securities·2025-07-30 02:49Investment Rating - The report maintains a "Buy" rating for Huaneng International, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [5][16]. Core Insights - In the first half of 2025, Huaneng International reported a revenue of 1120.32 billion yuan, a year-on-year decrease of 5.7%, while the net profit attributable to shareholders increased by 24.26% to 92.62 billion yuan [2][3]. - The decline in coal prices has alleviated the impact of falling electricity prices, leading to improved profitability metrics, with a profit per kilowatt-hour of 0.046 yuan, an increase of 0.023 yuan year-on-year [4]. - The company has significantly expanded its renewable energy capacity, adding 6.3 GW of new wind and solar installations in the first half of 2025, reflecting a strong commitment to green and low-carbon development [4]. Financial Performance Summary - For 1H2025, the company's domestic consolidated electricity generation decreased by 2.37%, and the average electricity settlement price fell by 2.69% [3]. - The gross profit margin and net profit margin improved by 4.03 percentage points and 3.28 percentage points, reaching 19.6% and 10.99%, respectively [3]. - The company recorded a total profit of 73.10 billion yuan from coal power generation in 1H2025, an increase of 84% year-on-year [4]. Profit Forecast and Valuation - The forecasted net profits for 2025, 2026, and 2027 are 121.01 billion yuan, 130.52 billion yuan, and 135.59 billion yuan, respectively, with corresponding price-to-earnings ratios of 9.1, 8.5, and 8.1 [5][6].