JEI(SZ:000600) GF SECURITIES·2026-01-22 06:14Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market by more than 15% over the next 12 months [6]. Core Insights - The company achieved a significant increase in net profit, reaching 1.9 billion RMB, which represents a year-on-year growth of 253%, exceeding expectations. The fourth quarter performance was particularly strong, driven by improved profitability in thermal power and a reduction in financial costs [6][9]. - The company completed a total electricity generation of 48.6 billion kWh in 2025, with a focus on increasing installed capacity through new thermal power projects. The expected increase in installed capacity is projected to contribute positively to profits [6][9]. - A market value management plan has been implemented, emphasizing shareholder returns through cash dividends. The company has maintained a consistent dividend policy over the past decade, with a notable dividend payout of 180 million RMB in the third quarter of 2025 [6][9]. - Profit forecasts for the company indicate net profits of 1.877 billion RMB, 1.818 billion RMB, and 1.948 billion RMB for 2025, 2026, and 2027, respectively. The latest closing price corresponds to a price-to-book (PB) ratio of 1.4, 1.2, and 1.1 for the respective years [6][9]. Financial Summary - Revenue for 2023 is projected at 18.946 billion RMB, with a growth rate of 3.5%. For 2024, revenue is expected to rise to 23.517 billion RMB, reflecting a growth rate of 24.1% [2][9]. - EBITDA is forecasted to increase significantly from 1.922 billion RMB in 2023 to 5.943 billion RMB in 2025, indicating strong operational performance [2][9]. - The company's return on equity (ROE) is expected to improve from 1.7% in 2023 to 16.0% in 2025, showcasing enhanced profitability [2][9]. - The company’s debt-to-asset ratio is projected to decrease from 67.5% in 2023 to 59.0% in 2025, indicating improved financial stability [2][9].