TGWC(SH:600116) Changjiang Securities·2025-08-25 09:44Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company's self-generated hydropower generation decreased by 23.05% year-on-year in the first half of 2025 due to insufficient water inflow, leading to a significant decline in operating profit for the power business, which fell by 44.95% year-on-year to 171 million yuan [2][6] - Despite the challenges in the power sector, the comprehensive energy segment showed steady growth with a 21.82% increase in operating profit, while the manganese and trading business reported a loss of 48 million yuan, although this was an improvement compared to the previous year [2][6] - Overall, the company achieved a net profit attributable to shareholders of 48 million yuan in the first half of 2025, a decrease of 79.07% year-on-year, primarily due to pressures on the power business and multiple factors affecting performance [2][6] Summary by Sections Financial Performance - In the first half of 2025, the company reported total revenue of 4.896 billion yuan, a decrease of 6.10% year-on-year, and a net profit of 48 million yuan, down 79.07% year-on-year [6] - The operating profit from the power business was 171 million yuan, down 44.87% year-on-year, while the comprehensive energy segment's operating profit was 62 million yuan, up 21.83% year-on-year [2][6] Business Segments - The self-generated hydropower generation was 967 million kWh, down 23.05% year-on-year, while total sales volume reached 6.802 billion kWh, an increase of 2.66% year-on-year [2][13] - The average selling price of electricity was 0.4877 yuan/kWh, a slight decrease of 0.0033 yuan/kWh year-on-year [13] - The comprehensive energy segment's growth was supported by stable contributions from projects like the thermal power generation in Wanzhou and the participation of energy storage stations in frequency modulation auxiliary services [13] Future Outlook - The company is focusing on expanding its self-generated power capacity with several projects making significant progress, including the thermal power project in Fuling and distributed photovoltaic projects in Wanzhou [13] - The company maintains a strong growth outlook with a projected EPS of 0.12 yuan, 0.20 yuan, and 0.25 yuan for 2025-2027, corresponding to PE ratios of 57.72, 33.85, and 27.67 respectively [13]