CHINA RES POWER(HK:00836) Tianfeng Securities·2025-08-26 06:21Investment Rating - The investment rating for China Resources Power (00836) is "Buy" with a target price indicating a potential upside of over 20% within the next six months [5]. Core Views - The company reported a 15.9% year-on-year decrease in profit attributable to shareholders for the first half of 2025, amounting to HKD 7.872 billion, while core business profit slightly increased by 0.1% to HKD 8.278 billion [1]. - The company plans to maintain its annual target of adding 10GW of wind and solar capacity, with an expected 6GW of thermal power capacity to be commissioned in the second half of the year [2]. - The average on-grid electricity price for coal-fired power plants decreased by 6.1% to HKD 391.2 per MWh, while the average coal price fell by 11.8% to HKD 823.8 per ton, leading to a 21% increase in core profit from pure thermal power operations [3]. - Renewable energy sales increased significantly, with wind and solar power generation rising by 15.5% and 31.3% respectively, contributing to a 7.4% increase in core profit from renewable energy operations [4]. Summary by Sections Financial Performance - The company’s profit attributable to shareholders for H1 2025 was HKD 7.872 billion, down 15.9% year-on-year, while core business profit was HKD 8.278 billion, up 0.1% [1]. - The average on-grid electricity price for coal-fired plants was HKD 391.2 per MWh, a decrease of 6.1%, while the average coal price was HKD 823.8 per ton, down 11.8% [3]. Capacity Expansion - The company added approximately 4,839 MW of wind and solar capacity in H1 2025, with a total installed capacity of 39.14GW for thermal power and 25.55GW for wind power by the end of June [2]. - The company plans to commission about 5,982.5 MW of thermal power capacity in the second half of the year [2]. Renewable Energy Performance - The core profit from renewable energy operations was HKD 7.148 billion, reflecting a 7.4% year-on-year increase, while profit attributable to shareholders in this segment was HKD 5.637 billion, up 1.5% [4].