Huaneng Hydropower(SH:600025) Tianfeng Securities·2025-11-05 04:15Investment Rating - The investment rating for Huaneng Hydropower is "Buy" with a target price not specified [6] Core Views - The company's revenue for Q3 2025 was 7.68 billion yuan, a year-on-year increase of 1.9%, while the net profit attributable to shareholders was 2.93 billion yuan, a decrease of 4.1%. For the first three quarters, the net profit attributable to shareholders was 7.54 billion yuan, an increase of 4.3% year-on-year [1] - The increase in power generation was primarily driven by a significant rise in new energy installed capacity and favorable water conditions in the Lancang River basin, leading to a 11.9% year-on-year increase in power generation for the first three quarters [2] - The average on-grid electricity price in Q3 was approximately 0.178 yuan per kilowatt-hour, down by 1.6 cents compared to the same period last year, which contributed to the lower profit despite increased power generation [2] - The commissioning of new power units is expected to provide ongoing growth momentum, with the completion of the Toba Power Station and the Hard Liangbao Power Station [4] Financial Summary - The company is expected to achieve net profits of 8.61 billion yuan, 9.36 billion yuan, and 9.94 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 21.3x, 19.6x, and 18.5x [5] - Revenue projections for the years 2023 to 2027 are 23.46 billion yuan, 24.88 billion yuan, 26.47 billion yuan, 27.90 billion yuan, and 28.86 billion yuan, with growth rates of 10.97%, 6.05%, 6.37%, 5.40%, and 3.46% respectively [5][11] - The company's total assets are projected to reach 219.16 billion yuan by 2025, with a debt-to-asset ratio of 61.74% [11]