JEI(SZ:000600) Shanxi Securities·2025-11-04 06:06Investment Rating - The investment rating for the company is "Buy-A" with an upgrade [1][5]. Core Insights - The company reported a significant increase in net profit for the third quarter, achieving a year-on-year growth of 566.79% and exceeding market expectations [3][4]. - The company is benefiting from cost optimization and growth in power generation, with a notable reduction in the average comprehensive coal price [4]. - The company plans to raise funds through a private placement to support the construction of the Xibaipo Power Plant Phase IV project, which is expected to enhance its long-term competitiveness [4]. Financial Performance - For the first three quarters of 2025, the company achieved operating revenue of 164.82 billion yuan, a year-on-year increase of 4.51%, and a net profit attributable to shareholders of 15.83 billion yuan, a year-on-year increase of 262.86% [3]. - In the third quarter alone, the company generated operating revenue of 53.69 billion yuan, up 6.38% year-on-year and 18.31% quarter-on-quarter, with a net profit of 6.86 billion yuan, reflecting a substantial year-on-year increase [3][4]. - The average on-grid settlement price for electricity was 435.22 yuan per megawatt-hour, showing a slight year-on-year decline of 0.61% [4]. Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are 20.89 billion yuan, 21.63 billion yuan, and 23.38 billion yuan, respectively, with corresponding P/E ratios of 7.9, 7.6, and 7.1 [5][6]. - The company’s financial metrics indicate a significant improvement in profitability, with a projected net profit margin of 9.2% in 2025 [6][11].