GOLDEN SUN SECURITIES·2025-10-29 09:37Investment Rating - The investment rating for Huaneng International is "Buy" [5] Core Views - The company's performance has exceeded market expectations, driven by lower fuel costs and expansion in renewable energy [1][4] - The profitability of coal power has improved due to declining coal costs, which offset the pressure from electricity prices [2] - The expansion of renewable energy installations has led to significant growth in electricity generation and profit scale [3] Summary by Sections Financial Performance - For the first three quarters of 2025, Huaneng International reported revenue of 1729.75 billion yuan, a year-on-year decrease of 6.19%, while net profit attributable to shareholders was 148.41 billion yuan, an increase of 42.52% [1] - In Q3 2025, the company achieved revenue of 609.43 billion yuan, down 7.09% year-on-year, but net profit rose by 88.54% to 55.79 billion yuan [1] Electricity Generation and Pricing - In Q3 2025, the electricity generation from coal and gas units was 1000 billion kWh and 88 billion kWh, respectively, showing a year-on-year decline of 7.16% and 0.30% [2] - The average on-grid electricity price for the first three quarters of 2025 was 478.71 yuan per MWh, down 3.54% year-on-year [2] Renewable Energy Expansion - In Q3 2025, the company added 276.80 MW of wind power and 292.34 MW of solar power capacity, with corresponding electricity generation of 82 billion kWh and 83 billion kWh, marking year-on-year increases of 2.99% and 45.41% [3] - For the first nine months of 2025, the total installed capacity for wind and solar power reached 2205.25 MW and 4626.80 MW, with electricity generation of 292 billion kWh and 205 billion kWh, reflecting year-on-year growth of 8.90% and 47.73% [3] Investment Recommendations - The company is positioned as a leading player in the national power sector, with continuous improvement in coal power profitability and significant growth potential in renewable energy [4] - The profit forecasts for 2025-2027 have been revised upwards, with expected net profits of 150.12 billion yuan, 159.33 billion yuan, and 162.57 billion yuan, respectively [4]