Tianfeng Securities·2025-11-05 07:45Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential return of over 20% within the next six months [5][17]. Core Insights - The company reported a year-on-year increase of 20.32% in net profit for Q3, driven by a decrease in coal prices, which improved profitability [1][4]. - The company’s revenue for the first three quarters of 2025 was 959 billion yuan, a decrease of 9.72% year-on-year, while net profit attributable to the parent company was 64.37 billion yuan, an increase of 15.87% [1][4]. - The average on-grid electricity price for the first three quarters was approximately 509.55 yuan per megawatt-hour, down 2.76% from the previous year [3]. Financial Performance - The company completed a total power generation of 201.33 billion kilowatt-hours in the first three quarters of 2025, a decrease of about 5.87% year-on-year [3]. - The company’s coal price at Qinhuangdao Port for the first three quarters averaged 686 yuan per ton, down 189 yuan per ton year-on-year [4]. - The company’s estimated net profit for 2025-2027 is projected to be 71 billion, 73 billion, and 75 billion yuan, respectively, with corresponding P/E ratios of 8.9, 8.7, and 8.5 [4]. Company Structure and Capacity - The company has a controlling installed capacity of 77 GW, including 54.4 GW from coal-fired power, 20.58 GW from gas-fired power, and 2.45 GW from hydropower [2]. - The company acquired stakes in several subsidiaries, including 80% of Huadian Jiangsu Energy and 51% of Shanghai Huadian Fuyuan New Energy, which were consolidated into the company’s financial statements as of June 1, 2025 [2]. Market Position - The company is positioned in the public utility and power industry, with a current stock price of 5.47 yuan [5]. - The company’s total market capitalization is approximately 54.12 billion yuan, with a circulating market value of about 46.55 billion yuan [6].