Shenwan Hongyuan Securities·2025-10-29 08:45Investment Rating - The investment rating for Huaneng International is upgraded to "Buy" [2][7] Core Insights - The company's Q3 performance exceeded expectations, with total revenue of RMB 172.975 billion, a year-on-year decrease of 6.19%, while net profit attributable to shareholders increased by 40.70% to RMB 14.841 billion [7] - The decline in coal prices has significantly improved the profitability of thermal power generation, with a tax-pre profit of RMB 13.268 billion for coal power, up 102% year-on-year [7] - The company continues to expand its renewable energy capacity, with new installations of wind and solar power increasing by 50.28% and 23.28% respectively [7] - The stability of capacity pricing is expected to enhance profit predictability, with a projected cash dividend of RMB 0.27 per share for 2024, corresponding to a dividend yield of 3.49% [7] - Profit forecasts for 2025-2027 have been raised to RMB 15.214 billion, RMB 16.146 billion, and RMB 17.335 billion respectively, reflecting the positive impact of falling coal prices and stable capacity pricing [7] Financial Data and Profit Forecast - Total revenue for 2025 is estimated at RMB 241.484 billion, with a year-on-year growth rate of -1.7% [6] - Net profit attributable to shareholders for 2025 is projected at RMB 15.214 billion, representing a year-on-year growth of 50.1% [6] - Earnings per share for 2025 is expected to be RMB 0.97, with a projected PE ratio of 8 [6][7] - The gross profit margin is forecasted to be 18.8% for 2025, with a return on equity (ROE) of 10.1% [6]