WENERGY CO.,LTD.(SZ:000543) GOLDEN SUN SECURITIES·2025-08-26 06:54Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company achieved a revenue of 13.185 billion yuan in the first half of 2025, a year-on-year decrease of 5.83%, while the net profit attributable to shareholders increased by 1.05% to 1.082 billion yuan [1]. - The decline in revenue is attributed to a drop in both power generation and electricity prices in Anhui province, but cost improvements and the commissioning of new units have driven profit growth [1][3]. - The company’s gross profit margin for its power generation business improved to 18.63%, a 35.89% increase year-on-year, due to falling coal prices and optimized costs [3]. Summary by Sections Financial Performance - In Q2 2025, the company reported a revenue of 6.766 billion yuan, down 3.57% year-on-year, while net profit rose by 3.26% to 638 million yuan [1]. - The average electricity price in Anhui province for 2025 is approximately 413 yuan/MWh, a decrease of 5.4% from 2024 [2]. - The company’s net profit from its coal power operations in Anhui for the first half of 2025 was 555 million yuan, a slight decline of 0.61% year-on-year [2]. Cost and Profitability - The average coal price in the Bohai Rim region was 663 yuan/ton as of June 25, 2025, down 5.7% since the beginning of the year [3]. - The company’s sales, management, and financial expenses for the first half of 2025 were 95.7 million, 820.3 million, and 406.07 million yuan, reflecting changes of -7.43%, +0.7%, and -5.36% respectively [3]. Strategic Developments - The commissioning of the Qianyingzi Phase II unit in March 2025 has helped offset the decline in volume and price in the province [2]. - The company has deepened its strategic layout in Xinjiang, with the new Yinggema power plant contributing to performance growth [3]. Future Projections - Revenue projections for 2025, 2026, and 2027 are 29.062 billion, 29.625 billion, and 29.575 billion yuan respectively, with expected year-on-year growth rates of -3.4%, 1.9%, and -0.2% [4][5]. - The net profit attributable to shareholders is projected to be 2.120 billion, 2.346 billion, and 2.409 billion yuan for the same years, with corresponding EPS of 0.94, 1.04, and 1.06 yuan per share [4][5].