CTGR(SH:600905) Changjiang Securities·2025-09-07 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's revenue is under pressure due to weak electricity prices, leading to a year-on-year revenue decrease of 2.19% in the first half of the year [2][6]. - Despite an increase in installed capacity, the company faced challenges with lower utilization hours for wind and solar energy, resulting in a decline in average electricity prices [11]. - The company achieved a net profit of 38.15 billion yuan in the first half, a decrease of 5.48% year-on-year, with a more significant decline of 15.41% in the second quarter due to the absence of one-time gains [2][11]. Summary by Sections Revenue and Profitability - In the first half of 2025, the company reported total operating revenue of 14.736 billion yuan, down 2.19% year-on-year, and a net profit attributable to shareholders of 3.815 billion yuan, down 5.48% [6][11]. - The average on-grid electricity prices for wind and solar were 0.4101 yuan/kWh and 0.3384 yuan/kWh, respectively, reflecting year-on-year decreases of 9.97% and 9.17% [2][11]. Installed Capacity and Generation - The company added 2.1807 million kW of new installed capacity, bringing the total to 49.9366 million kW, a year-on-year increase of 20.7% [11]. - Despite the increase in capacity, the utilization hours for wind and solar energy decreased, with wind utilization hours at 1,146 hours (down 7.80%) and solar utilization hours at 597 hours (down 13.85%) [11]. Cost Management and Investment Income - Operating costs increased by 16.77% year-on-year, leading to a gross profit of 6.934 billion yuan, down 17.30% [11]. - The company achieved investment income of 915 million yuan, a significant increase of 167.32% year-on-year, which helped mitigate some of the operational pressures [11]. Future Outlook - The company has a substantial pipeline of projects, with 13.8178 million kW of capacity under construction, indicating potential for recovery as weather conditions improve [11]. - Earnings per share (EPS) are projected to be 0.22 yuan, 0.23 yuan, and 0.24 yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (PE) ratios of 19.35, 18.97, and 17.45 [11].