Huaneng Hydropower(SH:600025) Shenwan Hongyuan Securities·2025-10-31 07:12Investment Rating - The report maintains a "Buy" rating for Huaneng Hydropower [2] Core Insights - The company's Q3 performance met expectations, with a total revenue of RMB 20.641 billion for the first three quarters of 2025, reflecting a year-on-year increase of 6.3%. The net profit attributable to shareholders was RMB 7.539 billion, up 4.34% year-on-year [8] - The increase in power generation is attributed to favorable water conditions and the commissioning of new projects, with total power generation reaching 96.266 billion kWh, a year-on-year increase of 11.9% [8] - The company is expanding its renewable energy capacity, with significant growth in solar power generation, which increased by 63.8% year-on-year to 4.344 billion kWh [8] - Future growth potential is supported by the construction of new hydropower stations in the Lancang River upstream, enhancing the company's investment value [8] Financial Data and Profit Forecast - The total revenue forecast for 2025 is adjusted to RMB 26.798 billion, with a net profit forecast of RMB 9.280 billion, reflecting a year-on-year growth of 11.8% [7] - The company's gross margin is projected to be 57.6% in 2025, with a return on equity (ROE) of 11.7% [7] - The current stock price corresponds to a price-to-earnings ratio of 20 for 2025, indicating a favorable valuation given the company's growth prospects [8]