JEI(SZ:000600) Shanxi Securities·2025-08-19 03:22Investment Rating - The report assigns an "Add-A" rating to the company, indicating a positive outlook for its stock performance in the near term [3]. Core Insights - The company reported significant growth in its second-quarter performance, with a year-on-year increase in net profit of 452.44% and a revenue growth of 10.23% compared to the previous quarter [3]. - The company plans to raise up to 2 billion yuan through a private placement to fund the construction of the Xibaipo Power Plant Phase IV, which is expected to enhance its long-term competitiveness [4]. - The company has optimized costs and maintained stable revenue contributions from its power generation business, despite a slight decrease in electricity prices [3][4]. Financial Performance - For the first half of 2025, the company achieved a revenue of 11.113 billion yuan, a year-on-year increase of 3.63%, and a net profit of 899 million yuan, reflecting a growth of 169.37% [3]. - The average coal procurement price decreased by 14.77% year-on-year to 718.26 yuan per ton, contributing to improved profitability [3]. - The company generated a total power output of 24.269 billion kWh in the first half of the year, with an average utilization hour of 2,062 hours, which is above the regional average [3]. Financial Projections - The company is projected to achieve net profits of 1.221 billion yuan, 1.760 billion yuan, and 1.903 billion yuan for the years 2025, 2026, and 2027, respectively, indicating a compound annual growth rate of 129.96% from 2025 to 2026 [4]. - The earnings per share (EPS) are expected to rise from 0.68 yuan in 2025 to 1.05 yuan in 2027 [4]. - The report anticipates a gross margin improvement from 18.5% in 2025 to 23.1% in 2026 and 2027 [5][7].