Guohai Securities·2025-09-25 15:38Investment Rating - The report maintains a "Buy" rating for Huadian International (600027) [1] Core Views - The company's performance in Q2 2025 shows a year-on-year increase of 24% in net profit, driven by improvements in coal power performance and growth in investment income [1][4] - For H1 2025, the company reported a revenue of 599.5 billion yuan, a decrease of 9% year-on-year, while net profit attributable to shareholders increased by 13% to 39 billion yuan [4][6] - The report anticipates further improvement in coal power performance in the second half of 2025, leading to an adjusted revenue forecast of 1071 billion yuan for 2025 [4][7] Financial Performance Summary - In Q2 2025, the company achieved a revenue of 333.8 billion yuan, down 4.4% year-on-year, but net profit rose by 24.3% to 19.7 billion yuan [4] - The decline in revenue is attributed to a 6.5% decrease in power generation and a 1.4% drop in on-grid electricity prices [4] - Investment income for H1 2025 was 24.8 billion yuan, an increase of 11.8% year-on-year, with significant contributions from non-electric joint ventures [4][6] Earnings Forecast - The report projects revenues of 1071 billion yuan, 1041 billion yuan, and 1045 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 71.2 billion yuan, 73.6 billion yuan, and 73.9 billion yuan [4][7] - The corresponding price-to-earnings (PE) ratios are expected to be 8 for the years 2025 to 2027 [4][7]