JEI(SZ:000600) Yin He Zheng Quan·2025-08-18 07:20Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Views - The recent rebound in market coal prices, with Qinhuangdao 5500 kcal thermal coal prices rising from 609 CNY/ton in early June to 698 CNY/ton by August 15, indicates that coal power profitability is expected to continue growing in the second half of the year. Long-term, there is significant potential for improved stability in coal power profitability with the anticipated increase in capacity electricity prices in 2026 and beyond [2]. - The company reported a revenue of 11.113 billion CNY in the first half of 2025, a year-on-year decrease of 3.28%, while the net profit attributable to shareholders reached 899 million CNY, reflecting a substantial year-on-year increase of 157.96% [5]. - The company plans to raise up to 2 billion CNY through a private placement to fund the construction of the Xibaipo Power Plant Phase IV project, which will add significant coal power capacity [5]. Financial Performance Summary - In the first half of 2025, the company achieved a gross margin of 23.40% and a net margin of 11.82%, both showing significant year-on-year improvements [5]. - The company’s return on equity (ROE) was 8.18%, up by 4.89 percentage points year-on-year, and cash flow from operations increased by 130.57% to 1.728 billion CNY [5]. - The company’s total installed coal power capacity is currently 11.77 million kW, with plans for significant increases in capacity by 2026 [5]. Financial Forecasts - The company is projected to achieve net profits of 1.403 billion CNY, 1.545 billion CNY, and 1.672 billion CNY for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (PE) ratios of 9.6, 8.7, and 8.1 [5][6]. - Revenue is expected to decline slightly in 2025 and 2026 before rebounding in 2027, with a forecasted revenue of 22.881 billion CNY in 2025 [6][8].