Changjiang Securities·2025-10-30 09:44Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - In Q3 2025, the company's on-grid electricity volume increased by 3.17% year-on-year, while the on-grid electricity price decreased by approximately 0.021 yuan per kilowatt-hour, leading to a slight decline in revenue to 32.152 billion yuan, down 1.62% year-on-year. However, the significant drop in coal prices resulted in a 10.34% decrease in operating costs, contributing to a 55.43% increase in gross profit. The company reported a net profit of 2.133 billion yuan, a year-on-year increase of 61.18% despite a provision for asset impairment losses of 1.206 billion yuan, primarily due to goodwill impairment related to the acquisition of Anhui Electric Power [2][6][10]. Summary by Sections Revenue and Profitability - The company achieved operating revenue of 32.152 billion yuan in Q3 2025, a decrease of 1.62% year-on-year. The net profit attributable to shareholders was 2.133 billion yuan, reflecting a 61.18% increase year-on-year [6][10]. Electricity Generation and Pricing - The total on-grid electricity volume reached 82.248 billion kilowatt-hours, up 3.17% year-on-year. The average on-grid electricity price for the first three quarters was 0.430 yuan per kilowatt-hour, with Q3 pricing at 0.409 yuan per kilowatt-hour, a decrease of about 4.84% [2][10]. Cost Management - The company experienced a 10.34% reduction in operating costs due to a significant decline in coal prices, with the Q5500 coal price averaging 672.46 yuan per ton, down 175.63 yuan per ton year-on-year. This cost optimization led to a gross profit of 6.731 billion yuan, a 55.43% increase year-on-year [2][10]. Investment and Growth - The company added 3.5903 million kilowatts of installed capacity in the first three quarters of 2025, representing a 4.54% increase from the beginning of the year. The ongoing projects amount to 10.0042 million kilowatts, with approximately 641,000 kilowatts still under construction, which will support future revenue growth [2][10]. Earnings Forecast - The earnings per share (EPS) for 2025-2027 are projected to be 0.37 yuan, 0.43 yuan, and 0.46 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 10.27, 8.94, and 8.29 [2][10].