Huaneng Hydropower(SH:600025) GUOTAI HAITONG SECURITIES·2026-01-17 09:54Investment Rating - The report maintains a rating of "Buy" for Huaneng Hydropower [6][13] Core Views - The report highlights an acceleration in water inflow and anticipates increased demand for clean electricity driven by industrial upgrades in Yunnan [2][13] - The company is expected to achieve a significant increase in electricity generation, with a projected output of 1,259 billion kWh in 2025, representing a year-on-year growth of 13% [13] - The report emphasizes the positive impact of the construction of the Lancang River clean energy base and the rising demand for electricity in Yunnan, which supports the long-term growth of the company's revenue and profitability [13] Financial Summary - Total revenue is projected to grow from 23,461 million in 2023 to 28,028 million in 2027, with a compound annual growth rate (CAGR) of approximately 3.5% [4] - Net profit attributable to the parent company is expected to increase from 7,638 million in 2023 to 9,661 million in 2027, reflecting a CAGR of about 4.8% [4] - Earnings per share (EPS) is forecasted to rise from 0.41 yuan in 2023 to 0.52 yuan in 2027 [4] Market Data - The target price for the stock is set at 10.78 yuan, with the current price at 9.18 yuan [6] - The stock has a market capitalization of 171,033 million yuan and a total share count of 18,631 million [7] Industry Context - The report notes that Yunnan's power grid has the lowest carbon emissions in the country, which supports the development of high-energy-consuming industries and enhances the demand for clean electricity [13] - Key resource industries in Yunnan, such as green aluminum and photovoltaic silicon, have shown significant growth, with value-added increases of 11% and 76% respectively [13]