SINOLINK SECURITIES·2025-08-20 01:22Investment Rating - The report maintains a "Buy" rating for the company, with expected earnings per share (EPS) of 0.83, 0.91, and 1.00 RMB for 2025, 2026, and 2027 respectively, corresponding to price-to-earnings (PE) ratios of 8x, 7x, and 6x [4]. Core Insights - The company reported a revenue of 15.66 billion RMB for the first half of 2025, reflecting a 3.1% increase in continuing operations compared to the same period last year, while the net profit attributable to shareholders decreased by 14.4% to 3.52 billion RMB [2]. - The average on-grid electricity prices for wind and solar power decreased, with wind power at 422 RMB/MWh and solar power at 273 RMB/MWh, down by 16 RMB/MWh and 5 RMB/MWh respectively. Despite this, the company achieved a growth in electricity generation of 6.1% for wind and 71.4% for solar [2][3]. - The company plans to prioritize wind power development, focusing on high-capacity and high-price regions, and aims to return value to shareholders with a mid-term dividend of 0.1 RMB per share [3]. Performance Analysis - In the first half of 2025, the company’s capital expenditure was approximately 11.8 billion RMB, a decrease of 5.4% year-on-year, primarily due to reduced investment in new energy projects compared to the previous year [3]. - The installed capacity for wind and solar power increased by 10.8% and 54.8% respectively, although wind power utilization hours decreased by 68 hours due to unfavorable wind conditions [3]. - The company signed new development agreements totaling 1.24 GW during the period, with wind power accounting for 83.9% of this total [3]. Financial Forecast - The company is projected to achieve net profits of 6.97 billion RMB, 7.62 billion RMB, and 8.38 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding growth rates of 9.33%, 9.18%, and 9.28% [9].