CMS·2025-08-29 09:37Investment Rating - The report maintains a "Buy" rating for Datang Power (601991.SH) [2] Core Views - Datang Power's H1 2025 results exceeded expectations, with a revenue of CNY 57.193 billion, down 1.93% year-on-year, and a net profit of CNY 4.579 billion, up 47.35% year-on-year [1][5] - The company has initiated a mid-term dividend of CNY 0.055 per share, representing approximately 26.7% of the net profit attributable to shareholders [5] - The decline in coal prices and resilient electricity prices have contributed to a significant improvement in profitability [5] Financial Performance Summary - H1 2025 saw a slight decrease in coal power generation, but profitability per kilowatt-hour increased significantly, with coal power profit totaling CNY 3.148 billion, up 108.51% year-on-year [5] - The average on-grid electricity price was CNY 444.48 per MWh, down 3.95% year-on-year [5] - Renewable energy generation showed strong growth, with wind power generation up 31.28% and solar power up 36.35% year-on-year [5] - The overall gross margin improved to 18.55%, up 3.12 percentage points year-on-year, and the net margin reached 10.61%, up 3.26 percentage points year-on-year [5] Earnings Forecast and Valuation - The report projects net profits for 2025-2027 to be CNY 6.028 billion, CNY 6.570 billion, and CNY 7.089 billion, respectively, with year-on-year growth rates of 34%, 9%, and 8% [6][9] - The current stock price corresponds to a PE ratio of 10.5x for 2025, 9.6x for 2026, and 8.9x for 2027 [6][10]