ZZEPC(SH:600023) GOLDEN SUN SECURITIES·2025-08-29 08:11Investment Rating - The report maintains a "Buy" rating for the company [4][7] Core Views - The company has shown resilience with a Q2 profit increase despite a decrease in overall revenue and net profit for the first half of 2025, attributed to lower electricity prices in Zhejiang Province [1][4] - The company benefits from a decline in coal prices, which enhances its profit recovery potential and growth opportunities [4] - The report highlights a significant increase in electricity generation and sales, driven by rising demand in Zhejiang Province and new coal power projects coming online [2][4] Financial Performance Summary - For the first half of 2025, the company reported operating revenue of 35.472 billion yuan, a decrease of 11.68% year-on-year, and a net profit of 3.512 billion yuan, down 10.57% year-on-year [1] - In Q2 2025, the company achieved operating revenue of 17.87 billion yuan, a decrease of 11.28% year-on-year, but a net profit of 2.437 billion yuan, an increase of 15.42% year-on-year [1] - The company's electricity generation for the first half of 2025 was 78.848 billion kWh, up 4.48% year-on-year, with a notable increase in Q2 [2] Investment Insights - The company is positioned as a leading thermal power operator in Zhejiang Province, with a strong financial position and high dividend yield [4] - Projected revenues for 2025-2027 are 86.797 billion yuan, 90.309 billion yuan, and 91.955 billion yuan, with corresponding net profits of 6.838 billion yuan, 7.895 billion yuan, and 8.481 billion yuan [4][6] - The report emphasizes the company's ability to recover profits and maintain high dividend payouts, with an expected EPS of 0.51 yuan, 0.59 yuan, and 0.63 yuan for 2025-2027 [4][6]