Huaihe Energy(SH:600575) Guotou Securities·2025-12-31 04:01Investment Rating - The investment rating for the company is "Buy-A" with a target price of 4.60 CNY for the next six months [3][4]. Core Insights - The completion of the asset acquisition significantly enhances the company's asset scale and establishes a coal-electricity integrated operation model, with total installed capacity increasing by 241% to 1,104 MW and coal production capacity rising by 67% to 1,000 million tons per year [1][2]. - The acquisition is expected to boost net profit by 9.35 billion CNY (+109%) in 2024, raising EPS from 0.22 CNY to 0.25 CNY (+14%) and ROE from 7.5% to 8.9% [2]. - The company has committed to a dividend payout ratio of no less than 75% from 2025 to 2027, with a DPS of at least 0.19 CNY, corresponding to a dividend yield of 5.5% based on the stock price as of December 29, 2025 [2]. Financial Projections - Projected revenues for 2025-2027 are 26.48 billion CNY, 37.28 billion CNY, and 41.69 billion CNY, with growth rates of -11.8%, 40.8%, and 11.8% respectively [3]. - Expected net profits for the same period are 8.8 billion CNY, 15.4 billion CNY, and 17.6 billion CNY, with growth rates of 2.8%, 74.6%, and 14.0% respectively [3]. - The company anticipates a significant increase in operational efficiency and profitability due to the integration of traditional and renewable energy sources [2].