HTSC·2025-07-30 05:22Investment Rating - The investment rating for the company is "Buy" [5][5]. Core Views - The company's profitability from coal power continues to improve, with a significant increase in net profit in the second quarter of 2025, driven by a decrease in coal prices [1][2]. - The company has accelerated its renewable energy construction, achieving 62.6% of its annual new installed capacity target in the first half of 2025 [3]. - The overall profit trend for 2025 is expected to remain positive, supported by rising electricity demand during peak summer periods [1][2]. Summary by Sections Financial Performance - In the first half of 2025, the company reported revenue of 1120.32 billion yuan, a year-on-year decrease of 5.7%, while net profit attributable to shareholders was 92.62 billion yuan, an increase of 24.3% [1]. - In the second quarter of 2025, revenue was 516.97 billion yuan, down 3.3% year-on-year, with net profit of 42.89 billion yuan, up 50.1% year-on-year [1]. Coal Power Segment - The coal power segment saw a total profit per kilowatt-hour increase of 2.9 cents year-on-year, despite a slight decrease in electricity prices and a 7.1% drop in electricity generation [2]. - The profit per kilowatt-hour for coal power in the second quarter of 2025 was 4.4 cents, reflecting a year-on-year increase of 2.9 cents [2]. Renewable Energy Segment - The company completed 62.6% of its annual new installed capacity target in the first half of 2025, with a total of 6262.91 MW of new wind and solar capacity [3]. - The total profit from wind and solar energy in the second quarter of 2025 was 29.17 billion yuan, slightly exceeding expectations due to higher-than-expected solar capacity additions [3]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025 is maintained at 125 billion yuan, with a target price of 9.02 yuan per share for A-shares and 5.97 HKD for H-shares [4][5]. - The company is valued at a PE ratio of 20.0x and a PB ratio of 0.98x, reflecting a premium due to stronger profitability in renewable energy and robust performance in coal power auxiliary services [4].