Investment Rating - The investment rating for China Nuclear Power (601985.SH) is "Buy" (maintained) [1] Core Views - The overall operating performance of the company is stable, with new installed capacity offsetting price pressure [3] - The company achieved operating revenue of 40.973 billion yuan in H1 2025, a year-on-year increase of 9.4%, while net profit attributable to shareholders decreased by 3.66% year-on-year to 5.666 billion yuan [3][4] - Due to relaxed power supply and demand and declining market prices in multiple provinces, the profit forecast for 2025-2027 has been revised downwards [3] - The expected net profit attributable to shareholders for 2025-2027 is 9.525 billion, 10.586 billion, and 11.376 billion yuan respectively, with corresponding EPS of 0.46, 0.51, and 0.55 yuan [3] Financial Performance Summary - As of June 30, 2025, the company had a total installed capacity of 25.00 GW for nuclear power, 10.34 GW for wind power, and 22.88 GW for solar power, representing year-on-year increases of 5.3%, 36.8%, and 54.5% respectively [4] - The total power generation for H1 2025 was 99.861 billion kWh for nuclear, 10.223 billion kWh for wind, and 11.692 billion kWh for solar, with year-on-year growth of 12.0%, 34.0%, and 37.3% respectively [4] - The average electricity prices for nuclear, wind, and solar were 0.396, 0.317, and 0.438 yuan/kWh, showing a decline compared to the previous year [4] - The gross profit margins for nuclear, wind, and solar were 45.83%, 46.34%, and 44.75%, reflecting a decrease from the previous year [4] Future Growth Potential - The third-generation reactor heat supply transformation is expected to increase revenue and profit, with the first million-kilowatt commercial fast reactor in China completing preliminary design [5] - The company is expected to leverage group advantages to strengthen its core nuclear power business [5]

Investment Rating - The investment rating for China Nuclear Power (601985.SH) is "Buy" (maintained) [4] Core Views - The company's 2024 performance fell short of expectations due to significant income tax provisions, with a reported revenue of 77.27 billion yuan, a year-on-year increase of 3.1%, and a net profit of 8.78 billion yuan, a year-on-year decrease of 17.38% [4] - The report anticipates a downward adjustment in profit forecasts for 2025-2026, with new profit projections for 2027 introduced, estimating net profits of 10.82 billion yuan (previously 12.53 billion yuan), 11.71 billion yuan (previously 13.11 billion yuan), and 12.70 billion yuan for 2025-2027 respectively [4] - The report highlights the company's strong position in the nuclear power industry and robust technical capabilities, justifying the "Buy" rating despite the challenges faced [4] Financial Summary - In 2024, the company achieved a revenue of 77.27 billion yuan, with a year-on-year growth of 3.1%, and a net profit of 8.78 billion yuan, reflecting a year-on-year decline of 17.38% [4][7] - The gross margin and net margin for 2024 were 42.9% and 21.4%, respectively, both showing a decline compared to the previous year [4] - For 2025, the estimated revenue is projected to be 83.23 billion yuan, with a year-on-year growth of 7.7%, and a net profit of 10.82 billion yuan, indicating a recovery with a year-on-year increase of 23.3% [7] Industry Insights - The approval of nuclear power projects has entered a normalization phase, with the State Council approving five nuclear power projects comprising ten nuclear units, including eight units utilizing the "Hualong One" technology [5] - As of April 2025, there are 54 nuclear units approved for construction or awaiting construction in China, with 33 units based on the Hualong One technology [5] - The report anticipates a continued approval pace of 8-10 million kilowatt nuclear units annually during the 14th Five-Year Plan period, maintaining the trend of normalized approvals [5]