CNNP(SH:601985) HTSC·2025-08-29 04:53Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 9.90 [2]. Core Views - The report highlights that the company is expected to benefit from a new cycle of nuclear power generation, leading to sustained profit growth. The net profit for the first half of 2025 increased by 11% year-on-year, driven by the commissioning of new units [6][7]. - However, the report also notes that the company's net profit may face pressure due to declining electricity prices in the renewable energy sector [8][9]. Financial Forecasts and Valuation - The projected revenue for 2025 is RMB 82,062 million, with a year-on-year growth of 6.20%. The net profit attributable to the parent company is expected to be RMB 9,305 million, reflecting a growth of 6.01% [5][9]. - The report adjusts the earnings forecast for 2025-2027, with net profit estimates of RMB 93.05 billion, RMB 100.17 billion, and RMB 123.18 billion respectively, indicating a compound annual growth rate (CAGR) of 11% [9][20]. - The report also provides a comparison of the company's valuation metrics, with a projected PE ratio of 19.96 for 2025, which is higher than the average of comparable companies [22]. Operational Overview - As of the first half of 2025, the company has 26 operational nuclear units with a total capacity of 25.0 GW and 13 units under construction with a capacity of 15.14 GW. The company is also preparing for more than 15 additional units, which will support future approvals [7]. - In the renewable energy segment, the company has 33.22 GW of operational capacity and 10.45 GW under construction. However, the net profit from this segment decreased by 32% year-on-year due to falling electricity prices [8].