wsdl(SH:600995) Tianfeng Securities·2025-09-10 09:45Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5][16]. Core Views - The company reported a revenue of 3.3 billion yuan in the first half of 2025, representing a year-on-year growth of 13.38%, and a net profit attributable to shareholders of 832 million yuan, an increase of 32.93% year-on-year [1]. - The increase in hydropower generation due to improved water inflow and the participation in the spot market are expected to enhance profitability [2][3]. - The company has a total installed capacity of 10.28 million kilowatts for pumped storage, with ongoing projects expected to contribute to future revenue [2]. - The new energy storage projects have been successfully launched, contributing to the overall profit growth [3]. Financial Performance - The company achieved a hydropower generation of 4.35 billion kilowatt-hours in the first half of 2025, a year-on-year increase of 23.3% [3]. - The forecasted net profit for 2025-2027 is adjusted to 1.35 billion, 1.53 billion, and 1.91 billion yuan respectively, with corresponding P/E ratios of 27.9, 24.6, and 19.7 [4]. - The company’s revenue is projected to grow from 5.63 billion yuan in 2023 to 9.38 billion yuan in 2027, with a compound annual growth rate of approximately 15.34% [4][10]. Market Participation - The company’s pumped storage project in Meizhou has been participating in the electricity spot market since October 2024, with plans to expand its participation [2]. - The transition to continuous settlement in the southern region's electricity spot market is expected to further enhance the company's revenue from electricity sales [2]. New Energy Initiatives - The company has successfully launched three new energy storage projects with a total capacity of 225 MW, contributing to its revenue stream [3]. - The total installed capacity for new energy storage as of June 2025 is 654.2 MW, with a total energy storage capacity of 1,298.3 MWh [3].