Great Wall Securities·2025-09-02 06:00Investment Rating - The investment rating for the company is "Buy" with a target of outperforming the industry index by more than 15% over the next six months [5][19]. Core Views - The company's profitability has significantly improved due to the decline in coal prices, and the recent asset injection has greatly increased its installed capacity [3][4]. - The company has completed the acquisition of conventional energy assets, enhancing its market share and optimizing its energy structure [4][10]. - Future revenue and profit growth are expected, with projected revenues of 119.85 billion, 131.10 billion, and 133.66 billion yuan for 2025, 2026, and 2027 respectively, alongside net profits of 6.91 billion, 7.32 billion, and 7.96 billion yuan [10]. Financial Performance Summary - For 2023A, the company reported revenue of 117.18 billion yuan, with a year-on-year growth rate of 9.5% [11]. - The net profit attributable to the parent company for 2023A was 4.52 billion yuan, reflecting a substantial year-on-year increase of 3789% [11]. - The company's return on equity (ROE) is projected to improve from 5.8% in 2023A to 7.9% in 2027E [11]. Revenue and Profit Trends - In the first half of 2025, the company achieved a revenue of 59.95 billion yuan, a decrease of 8.98% year-on-year, while the net profit attributable to the parent company was 3.90 billion yuan, an increase of 13.15% year-on-year [2][3]. - The average utilization hours for the company's power generation units decreased to 1595 hours in the first half of 2025, down by 115 hours year-on-year [2]. Cost Management - The company effectively controlled fuel costs, with the price of coal decreasing by 12.98% year-on-year to 850.74 yuan per ton, leading to a reduction in fuel costs by 13.28% [3]. Asset Injection and Capacity Expansion - The company completed the acquisition of 16.06 million kilowatts of conventional energy assets, increasing its total installed capacity from 59.82 million kilowatts to 77.44 million kilowatts [4]. - The company has a robust project reserve with 11.97 million kilowatts of approved and under-construction units as of June 2025 [9]. Shareholder Returns - The company proposed a mid-year dividend of 0.09 yuan per share, with a cash dividend payout ratio of 27.27% [2][9].