Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a decline in revenue and net profit for the first half of 2025, with total revenue of 14,736 million yuan, down 2.19% year-on-year, and net profit attributable to shareholders of 3,815 million yuan, down 5.48% year-on-year, slightly below expectations [7] - The installed capacity continues to grow, but the decrease in utilization hours has led to a slowdown in the growth of wind and solar power generation [7] - The average on-grid electricity price has come under pressure due to changes in electricity structure and increased market transactions, with a year-on-year decline of 9.89% to 381 yuan/MWh [7] - Operating cash flow remains stable, with a year-on-year increase of 1.62% to 8,247 million yuan, despite profit pressures [7] - The profit forecast has been adjusted downwards for 2025-2027, with net profit estimates of 63.83 billion yuan, 74.09 billion yuan, and 80.93 billion yuan respectively [7] Financial Data and Profit Forecast - Total revenue for 2025 is estimated at 30,628 million yuan, with a year-on-year growth rate of 3.1% [6] - Net profit attributable to shareholders for 2025 is projected to be 6,383 million yuan, reflecting a year-on-year growth of 4.4% [6] - Earnings per share for 2025 is expected to be 0.22 yuan [6] - The company's gross profit margin is projected to be 48.7% for 2025 [6] - The return on equity (ROE) is estimated at 7.0% for 2025 [6]

Core Viewpoint - In the first half of 2025, the company reported a revenue of HKD 50.267 billion, a year-on-year decrease of 1.7%, and a net profit attributable to shareholders of HKD 7.872 billion, down 15.9% year-on-year. The decline in revenue was mainly due to a decrease in the on-grid electricity price of subsidiary power plants, while the drop in net profit was attributed to significant declines in other gains [1][2][3] Financial Performance - The company's core net profit attributable to shareholders reached HKD 8.278 billion, a slight increase of 0.1% year-on-year. The renewable energy segment contributed HKD 5.637 billion to core net profit, up 1.5%, while the thermal power segment's core net profit was HKD 2.641 billion, down 2.7%. Excluding coal business, the pure thermal power segment achieved a core net profit of HKD 2.788 billion, a significant increase of 20.6% [1][2][3] Revenue Breakdown - The renewable energy business saw a revenue increase driven by a 10% rise in sales volume, reaching HKD 14.5 billion in the first half of 2025. The average benchmark coal price for subsidiary power plants was HKD 824 per ton, down 12% year-on-year, leading to a significant improvement in the cost of coal-fired electricity generation [1][2][3] Installed Capacity and Sales - As of June 2025, the company had a controlling installed capacity of 88.93 million kilowatts, with a rights-based capacity of 78.09 million kilowatts. The thermal power rights-based capacity was 39.14 million kilowatts, accounting for 50.1%. The company added 1.24 million kilowatts of wind power and 3.51 million kilowatts of solar power in the first half of 2025 [2][3] Market Dynamics - The decline in coal prices and the relatively loose power supply and demand led to a decrease in on-grid electricity prices. The on-grid electricity prices for coal, wind, and solar were HKD 391.2, HKD 396.8, and HKD 304.9 per megawatt-hour, respectively, representing year-on-year decreases of 6%, 11%, and 6% [3][4] Future Outlook - The company expects stable profitability in thermal power, with a forecasted net profit attributable to shareholders of HKD 13.748 billion, HKD 13.798 billion, and HKD 14.667 billion for 2025 to 2027. The company maintains a stable dividend policy [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][31]. Core Views - The company reported a stable growth in investment income, with a significant dividend support from Yalong River Hydropower [1][7]. - In the first half of 2025, the company achieved an operating revenue of 712 million yuan, a year-on-year increase of 17.95%, and a net profit attributable to shareholders of 2.461 billion yuan, up 6.90% year-on-year [7][8]. - The company received dividends from Yalong River Hydropower amounting to 3.216 billion yuan, a substantial increase compared to the same period in 2024 [8]. Summary by Sections Financial Performance - In H1 2025, the company’s investment income grew by 5.75% year-on-year, totaling 2.551 billion yuan, with equity investment income from associates increasing by 7% [8]. - The company’s power generation volume reached 2.361 billion kWh, a year-on-year increase of 17.76%, with hydropower generation contributing 2.228 billion kWh, up 17.82% [8][9]. - The average on-grid electricity price increased by 8.17% year-on-year to 0.278 yuan/kWh, with hydropower prices rising by 11.62% [9]. Operational Highlights - The total installed capacity of the company reached 37.41 million kW by the end of H1 2025, with equity capacity at 17.65 million kW [9]. - The company holds a 48% stake in Yalong River Hydropower, which has a total installed capacity of 20.83 million kW, including 19.2 million kW of hydropower [9]. Dividend and Shareholder Actions - The company has maintained a stable dividend of 0.4 yuan per share from 2021 to 2024, with the 2024 annual equity distribution completed in July 2025 [12]. - The controlling shareholder, Sichuan Energy Development Group, increased its stake in the company to 50.19% between April 9 and July 17, 2025 [12]. Profit Forecast and Valuation - The projected net profits for the company from 2025 to 2027 are 5.201 billion yuan, 5.503 billion yuan, and 5.780 billion yuan, respectively, with corresponding earnings per share of 1.07 yuan, 1.13 yuan, and 1.19 yuan [13][14]. - The price-to-earnings ratios for the same period are estimated at 14.40X, 13.60X, and 12.95X, indicating a favorable valuation outlook [13].