Changjiang Securities·2025-10-30 09:41Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - In Q3 2025, the company's power generation volume decreased by 5.05% year-on-year, and the electricity price fell by 0.025 yuan per kilowatt-hour, leading to a 10.92% decline in quarterly revenue. However, due to a significant drop in coal prices, the company's main business operations improved, achieving a quarterly gross profit of 5.195 billion yuan, a year-on-year increase of 33.60%. The company also optimized its expense spending, with management and financial expenses both decreasing year-on-year. Despite a decline in investment income due to a reduced stake in Huadian New Energy and lower contributions from coal companies, the strong performance of the main business still dominated the company's results, with a net profit attributable to shareholders of 2.533 billion yuan in Q3, up 20.32% year-on-year, and a total net profit of 6.437 billion yuan for the first three quarters, an increase of 15.87% year-on-year [2][6][12]. Summary by Sections Revenue and Profitability - In Q3 2025, the company achieved operating revenue of 35.92 billion yuan, a year-on-year decrease of 10.92%. The net profit attributable to shareholders was 2.533 billion yuan, a year-on-year increase of 20.32% [6][12]. Cost Management - The company experienced a significant year-on-year decline in coal prices, with the Q5500 coal price averaging 672.46 yuan per ton, down 175.63 yuan per ton. This led to a 15.68% decrease in operating costs to 30.724 billion yuan, which was greater than the revenue decline, resulting in a gross profit of 5.195 billion yuan, up 33.60% year-on-year. The company also reduced management expenses by 4.20% to 579 million yuan and financial expenses by 17.58% to 780 million yuan [12][13]. Investment and Growth - The company added 17.6247 million kilowatts of operational capacity in the first half of 2025. As of mid-2025, the approved and under-construction capacity reached 11.966 million kilowatts, including gas and coal power units. The expansion of capacity is expected to contribute to performance growth [12][13]. Earnings Forecast - The company is projected to have EPS of 0.61 yuan, 0.65 yuan, and 0.71 yuan for 2025-2027, with corresponding PE ratios of 8.84, 8.31, and 7.54 [12][13].