XINJI ENERGY(SH:601918) GF SECURITIES·2026-04-01 04:49Investment Rating - The investment rating for the company is "Buy" [7]. Core Views - The company is expected to continue its growth in electricity generation in 2026, with a significant valuation advantage. The reasonable value is estimated at 9.07 CNY per share, based on a 10x PE ratio for 2026 [7][8]. - The company reported a stable profit for 2025, with a year-on-year revenue decrease of 3.5% and a net profit of 2.14 billion CNY, which is a decline of 10.7% year-on-year. However, Q4 performance showed a recovery with a 20% quarter-on-quarter increase [7][8]. - The coal business saw a 4% increase in sales volume in 2025, with effective cost control leading to a decrease in costs. The average price of coal is expected to stabilize, contributing to profit stability [7][8]. - The electricity business is set to grow with the successful commissioning of new power plants, which will significantly contribute to the company's performance in 2026 [7][8]. Financial Summary - Revenue projections for 2024A to 2028E are as follows: 12.73 billion CNY (2024A), 12.28 billion CNY (2025A), 18.31 billion CNY (2026E), 20.21 billion CNY (2027E), and 20.80 billion CNY (2028E) [2]. - The expected net profit for the same period is: 2.39 billion CNY (2024A), 2.14 billion CNY (2025A), 2.35 billion CNY (2026E), 2.49 billion CNY (2027E), and 2.68 billion CNY (2028E) [2]. - The company's EPS is projected to be 0.92 CNY (2024A), 0.82 CNY (2025A), 0.91 CNY (2026E), 0.96 CNY (2027E), and 1.03 CNY (2028E) [2]. - The company maintains a strong return on equity (ROE) of 15.4% in 2024A, declining to 10.9% by 2028E [2].