KAIYUAN SECURITIES·2026-03-27 05:55Investment Rating - The report assigns a "Buy" rating for Huaneng International (600011.SH) [1] Core Views - Huaneng International, as a leading player in the thermal power sector under Huaneng Group, is expected to benefit from the restructuring of the thermal power business model and the sustainable development of the renewable energy sector. The company is projected to achieve net profits of 14.49 billion, 15.46 billion, and 15.94 billion yuan for the years 2026 to 2028, with corresponding EPS of 0.92, 0.98, and 1.02 yuan per share, leading to a PE ratio of 8.2, 7.6, and 7.4 times respectively [4][6] Summary by Relevant Sections Thermal Power Business - Huaneng International is positioned to benefit from the restructuring of the thermal power business model, with a focus on enhancing operational efficiency and reducing the cyclical nature of profits. The company has a significant advantage with over 55% of its thermal power capacity being large units of 600 MW or more, primarily located in economically developed regions [4][5][6] Renewable Energy Business - The renewable energy sector is entering a phase of market-oriented reform, with policies becoming clearer. The company is expanding its renewable energy capacity, particularly in wind and solar, which are expected to contribute increasingly to profits. The company’s renewable energy projects are mainly located in economically vibrant regions, enhancing their profitability [5][6][12] Financial Summary and Valuation Indicators - For the fiscal year 2025, Huaneng International is expected to generate total revenue of 229.29 billion yuan, with a net profit of 14.41 billion yuan, reflecting a year-on-year growth of 42.2%. The gross margin is projected to be 18.4%, and the net margin is expected to reach 6.3% [6][12]