Shenwan Hongyuan Securities·2025-08-22 10:16Investment Rating - The report maintains a "Buy" rating for Longyuan Power (00916) [1] Core Views - The company's revenue for the first half of 2025 was RMB 15.657 billion, a decrease of 18.6% year-on-year, with net profit attributable to equity holders at RMB 3.519 billion, down 14.4% year-on-year, which was below expectations [6] - The growth in photovoltaic installations has led to an increase in power generation, while wind power utilization hours have been affected by wind conditions [6] - The average on-grid electricity price for wind power decreased by RMB 16 per MWh year-on-year to RMB 422 per MWh, while the average price for photovoltaic power decreased by RMB 5 per MWh to RMB 273 per MWh [6] - The company has been actively pursuing subsidy policies and has a high compliance rate for projects included in the subsidy list [6] - The company plans to start new renewable energy projects totaling 5.5 million kilowatts in 2025, with a focus on high-quality resource areas [6] - The commissioning of three ultra-high voltage transmission projects is expected to enhance the confidence in the consumption of renewable energy [6] Financial Data and Profit Forecast - Revenue (RMB million): 2023: 37,638; 2024: 31,370; 2025E: 31,736; 2026E: 32,156; 2027E: 34,304 [2] - Net profit attributable to equity holders (RMB million): 2023: 6,355; 2024: 6,425; 2025E: 6,441; 2026E: 7,056; 2027E: 7,985 [2] - Earnings per share (RMB/share): 2023: 0.74; 2024: 0.76; 2025E: 0.77; 2026E: 0.84; 2027E: 0.96 [2] - Price-to-earnings ratio: 2025E: 8.1; 2026E: 7.4; 2027E: 6.6 [2] - Return on equity: 2023: 9.0%; 2024: 8.8%; 2025E: 8.1%; 2026E: 8.2%; 2027E: 8.5% [2]