Huaneng Hydropower(SH:600025) Zhongyuan Securities·2025-11-04 13:05Investment Rating - The investment rating for the company is "Buy" (maintained) [3][15][38] Core Views - The company has reported a revenue of 7.682 billion yuan for Q3 2025, a year-on-year increase of 1.92%, while the net profit attributable to shareholders decreased by 4.12% to 2.93 billion yuan [6][8] - The company achieved a cumulative revenue of 20.641 billion yuan for the first three quarters, reflecting a year-on-year growth of 6.3%, with a net profit of 7.539 billion yuan, up 4.34% year-on-year [6][8] - The company’s financial expenses have decreased by 3.07% year-on-year, indicating improved financial management [8][9] Summary by Sections Financial Performance - The company completed a total electricity generation of 596.266 billion kWh in the first three quarters, representing an increase of 11.90% year-on-year [7] - The average return on equity (ROE) for the company was 11.62%, an increase of 1.76 percentage points compared to the same period in 2024 [6][8] - The company’s gross profit margin stands at 60.68% [3] Project Development - The company has successfully launched the TB and Hard Beam water power stations, contributing to the increase in electricity generation [7][9] - The company is advancing the "water-wind-solar integration" base construction, laying the groundwork for future capacity growth [9][14] Future Outlook - The company is expected to see net profits of 8.720 billion yuan, 9.276 billion yuan, and 9.747 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding earnings per share of 0.47 yuan, 0.50 yuan, and 0.52 yuan [15][16] - The company’s valuation is projected to be stable, with a price-to-earnings ratio (PE) of 21X for 2025, 19.74X for 2026, and 18.79X for 2027 [15][16]