wsdl(SH:600995) Guohai Securities·2025-09-03 14:05Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - In H1 2025, the company achieved a revenue of 3.3 billion yuan, a year-on-year increase of 13.4%, and a net profit attributable to the parent company of 830 million yuan, up 32.9% year-on-year. In Q2 2025, revenue was 1.74 billion yuan, with a net profit of 460 million yuan, reflecting a year-on-year increase of 34.5% [4][7] - The increase in revenue is attributed to higher generation from peak-shaving hydropower plants due to increased water inflow, and a rise in revenue from the spot market for pumped storage [7] - The company is progressing with 10 pumped storage projects, with plans for the second phase of Meixu and the Nanning project to be operational in 2025 [7] Summary by Sections Financial Performance - H1 2025 revenue breakdown: Peak-shaving hydropower revenue was 880 million yuan (+23.05% YoY), pumped storage revenue was 2.17 billion yuan (+6.3% YoY), and new energy storage revenue was 180 million yuan (+28.9% YoY) [7] - The net profit margin improved to 30.6%, up 3.7 percentage points YoY, driven by a gross margin increase of 2.5 percentage points to 52.7% and a reduction in management expenses by 6.7% [7] Future Outlook - The company expects revenue for 2025-2027 to be 6.64 billion, 8.02 billion, and 9.28 billion yuan respectively, with net profits of 1.24 billion, 1.52 billion, and 1.77 billion yuan, corresponding to P/E ratios of 27, 22, and 19 times [7][10] - The entry of pumped storage units into production is anticipated to contribute to growth, maintaining the "Buy" rating [7]