Huaneng Hydropower(SH:600025) Tianfeng Securities·2025-09-03 09:32Investment Rating - The report maintains a "Buy" rating for Huaneng Hydropower, with an expected relative return of over 20% within the next six months [7]. Core Views - The company's revenue for the first half of 2025 reached 12.96 billion yuan, a year-on-year increase of 9.1%, while the net profit attributable to shareholders was 4.61 billion yuan, up 10.5% year-on-year [1]. - The increase in power generation, which reached 52.752 billion kWh, a 12.97% year-on-year growth, is attributed to the significant increase in new energy installed capacity and favorable water conditions in the Lancang River basin [2]. - The company’s photovoltaic projects saw a notable increase in generation, with 3.049 billion kWh produced, marking a 66.1% year-on-year growth [3]. - Future growth is expected to be supported by the full capacity operation of the Huaneng Hard Liangbao Power Station and the ongoing development of clean energy projects in the upper Lancang River region [4]. Financial Performance and Forecast - The company is projected to achieve net profits of 8.81 billion yuan, 9.20 billion yuan, and 9.67 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 18.7, 17.9, and 17.1 [5]. - The revenue forecast for 2025 is set at 26.617 billion yuan, with a growth rate of 6.98% [11]. - The EBITDA for 2025 is estimated to be 21.800 billion yuan, reflecting a steady growth trajectory [11].