HTSC·2025-10-31 06:50Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintained from previous assessments [5]. Core Views - The company's profitability is expected to improve due to the delivery of high-margin coal power orders, with Q3 2025 showing a total revenue of 17.371 billion RMB, a year-on-year increase of 20.69% [1]. - The company is projected to benefit from the normalization of traditional power source orders, with a significant increase in coal power capacity approvals [4]. - The dividend payout ratio is expected to increase annually from 2025 to 2027, starting from a base of 46.76% in 2024 [3]. Summary by Sections Financial Performance - In Q3 2025, the company achieved a net profit of 1.057 billion RMB, a year-on-year increase of 13.22% and a quarter-on-quarter increase of 39.77% [1]. - For the first three quarters of 2025, total revenue reached 55.522 billion RMB, reflecting a year-on-year growth of 16.03% [1]. Profitability Metrics - The gross margin for Q3 2025 increased by 0.6 percentage points to 15.2%, while the net profit margin rose by 2.2 percentage points to 6.1% [2]. - The company has effectively managed its expenses, with a decrease in the expense ratio compared to previous periods [2]. Order Growth and Dividend Policy - New effective orders in the first nine months of 2025 increased by 9% year-on-year, totaling 88.6 billion RMB [3]. - The company has outlined a shareholder return plan, indicating a minimum dividend payout ratio of 47.76% for 2025 [3]. Earnings Forecast and Valuation - The forecast for net profit for 2025 has been slightly adjusted to 4.009 billion RMB, with corresponding EPS estimates for 2026 at 1.38 RMB [4]. - The target price for A shares is set at 26.70 RMB, while the target price for H shares is 23.70 HKD, reflecting a premium based on recent trading data [4].