ZZEPC(SH:600023) Tianfeng Securities·2025-09-19 01:47Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential return of over 20% within the next six months [6][15]. Core Insights - The company's revenue for the first half of 2025 was 35.12 billion yuan, a decrease of 10.57% year-on-year, while the net profit for Q2 2025 was 24.37 billion yuan, showing a year-on-year increase of 15.42% [1][2]. - The decline in coal prices has significantly improved the cost structure, with the average coal price in Q2 2025 dropping to approximately 632 yuan per ton, a decrease of about 217 yuan per ton year-on-year [2]. - The company's investment income decreased by 20.44% year-on-year to 20.78 billion yuan in the first half of 2025, with specific declines in earnings from joint ventures and associates [3]. - The company has made strategic investments in future energy sectors, including nuclear fusion, which may enhance the long-term value of its assets [3]. Financial Performance Summary - For the first half of 2025, the company achieved a total revenue of 354.72 billion yuan, down 11.68% year-on-year, and a net profit of 35.12 billion yuan, down 10.57% year-on-year [1]. - The total power generation for the first half of 2025 was 788.48 billion kWh, reflecting a year-on-year growth of 4.48% [2]. - The company's operating costs for the first half of 2025 were 316.32 billion yuan, a decrease of 11.50% year-on-year, attributed to lower coal prices [2]. - The projected net profits for 2025-2027 are adjusted to 79.35 billion yuan, 81.89 billion yuan, and 84.98 billion yuan, respectively, indicating year-on-year growth rates of 2.35%, 3.19%, and 3.77% [4]. Valuation Metrics - The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 8.48, 8.22, and 7.92, respectively [4]. - The company's total assets are projected to be 144.25 billion yuan in 2025, with a debt-to-asset ratio of 37.22% [10].