WTECL(SH:600157) KAIYUAN SECURITIES·2025-10-31 14:21Investment Rating - The investment rating for the company is "Outperform" (maintained) [1] Core Views - The company reported a significant decline in revenue and net profit for the first three quarters of 2025, with revenue at 17.728 billion yuan, down 20.77% year-on-year, and net profit at 198 million yuan, down 86.48% year-on-year. However, the power generation segment achieved record-high output, which partially offset the impact of falling coal prices. The construction of the Haizetang coal mine and advancements in energy storage business are seen as positive developments for long-term growth, leading to an upward revision of profit forecasts for 2025-2027 [4][5][6]. Financial Performance Summary - For Q3 2025, the company achieved revenue of 7.052 billion yuan, a quarter-on-quarter increase of 40.05%, while net profit was 72 million yuan, a decrease of 3.87% quarter-on-quarter. The cumulative power generation for the first nine months was 31.429 billion kWh, with sales of 29.812 billion kWh [4][5]. - The company’s coal production for the first nine months was 11.331 million tons, with sales of 11.3905 million tons. In Q3 alone, coal production was 4.418 million tons, reflecting a quarter-on-quarter increase of 10.4% [5]. Growth Drivers - The Haizetang coal mine construction is progressing rapidly, with 70% of the second phase completed by the end of September 2025. The project is expected to start trial production in July 2026 and reach full production in 2027, providing a solid foundation for future performance [6]. - The energy storage business has made significant technological breakthroughs, including a new solid-state material that reduces costs by 40%-60% compared to traditional solutions, enhancing the company's competitive edge in the sector [6]. Financial Projections - The company forecasts net profits of 580 million yuan, 1.05 billion yuan, and 1.47 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.03 yuan, 0.05 yuan, and 0.07 yuan. The P/E ratios are projected to be 61.0, 33.9, and 24.2 for the same years [7][9].