Great Wall Securities·2025-09-23 09:57Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for the stock over the next six months [8]. Core Views - The company's short-term performance is impacted by declining electricity prices, but it plans to inject Huizhou Nuclear Power to solidify its future foundation [7][8]. - Despite short-term challenges, the long-term growth path of the company is clear, supported by a robust pipeline of nuclear projects and favorable industry trends [8]. Financial Summary - For 2023A, the company is projected to achieve a revenue of 82,549 million yuan, with a slight decline of 0.3% year-on-year. The net profit attributable to shareholders is expected to be 10,725 million yuan, reflecting a growth of 7.6% year-on-year [1]. - The company anticipates revenues of 86,804 million yuan in 2024A and 86,639 million yuan in 2025E, with net profits of 10,814 million yuan and 9,978 million yuan respectively [1][8]. - The company's return on equity (ROE) is projected to be 10.3% in 2023A, declining to 8.6% by 2025E [1]. Business Performance - In the first half of 2025, the company reported a revenue of 39,167 million yuan, down 0.53% year-on-year, and a net profit of 5,952 million yuan, down 16.30% year-on-year [1][2]. - The company's nuclear power generation revenue showed a slight increase of 0.93% year-on-year, primarily due to a growth in electricity generation, which offset the decline in market prices [3][4]. - The average market price of electricity decreased by approximately 8.23% compared to the same period in 2024, significantly affecting profitability [3]. Project Development - The company has a strong pipeline of nuclear projects, with 28 operational nuclear units and 20 under construction, providing a solid foundation for long-term growth [4][7]. - The planned acquisition of an 82% stake in Huizhou Nuclear Power for 9.375 billion yuan will enhance the company's project portfolio and growth prospects [7][8].