Guoxin Securities·2025-08-29 12:33Investment Rating - The investment rating for China General Nuclear Power Corporation (003816.SZ) is "Outperform the Market" [5][3][22]. Core Views - The company's performance has been impacted by declining electricity prices, with a reported revenue of 39.167 billion yuan in the first half of 2025, a decrease of 0.53% year-on-year, and a net profit of 5.952 billion yuan, down 16.30% year-on-year [1][7][10]. - The company is in the process of acquiring stakes in Huizhou Nuclear Power, which includes 82% of Huizhou Nuclear Power and 100% of Huizhou Second and Third Nuclear Power, with a total net asset value of approximately 8.03 billion yuan [2][22]. - The average market electricity price has decreased by approximately 8.23% year-on-year, with the Guangdong annual electricity trading price expected to be around 0.39186 yuan/kWh [2][22]. Summary by Sections Financial Performance - In the first half of 2025, the total power generation was 120.311 billion kWh, an increase of 6.11% year-on-year, while the grid-connected power generation was 113.360 billion kWh, up 6.93% year-on-year [1][7]. - The company's gross margin for the first half of 2025 was 34.99%, down 3.57 percentage points year-on-year, and the net margin was 22.55%, down 5.00 percentage points year-on-year [10][14]. Future Outlook - The company is managing 28 operational units with a total installed capacity of 31.796 million kW and has 20 units under construction with a capacity of 24.222 million kW, representing 44.46% of the national total [1][19]. - The expected net profit for 2025-2027 is projected to be 9.752 billion yuan, 10.435 billion yuan, and 11.176 billion yuan respectively, with year-on-year growth rates of -10%, 7%, and 7% [3][22]. Valuation Metrics - The current price-to-earnings (PE) ratios for 2025-2027 are projected to be 19.8, 18.5, and 17.3 times respectively [3][22]. - The price-to-book (PB) ratio for the acquisition of Huizhou Nuclear Power is approximately 1.17 times [2][22].