Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The Q3 performance was below expectations, primarily due to the cancellation of variable cost compensation in Guangdong [5] - The company reported a significant decline in revenue and net profit for Q3 2025, with revenue at 20.556 billion yuan, down 10.2% year-on-year, and net profit at 2.624 billion yuan, down 8.8% year-on-year [7] - The decline in electricity prices has notably impacted the company's earnings, with the average market transaction price in Guangdong dropping to approximately 0.372 yuan/kWh in Q3 2025 from 0.402-0.405 yuan/kWh in the same period last year [7] - The company has 20 nuclear power units under construction, which will support long-term growth, with the first unit expected to be operational in H2 2025 [7] - The cancellation of the variable cost compensation mechanism in Guangdong is expected to positively impact the company's annual long-term contract electricity price by approximately 0.02 yuan/kWh starting in 2026 [7] Financial Summary - Revenue projections for 2023 to 2027 are as follows: 82.549 billion yuan (2023), 86.804 billion yuan (2024), 85.734 billion yuan (2025E), 89.262 billion yuan (2026E), and 92.637 billion yuan (2027E) [6] - The expected net profit for the same period is: 10.725 billion yuan (2023), 10.814 billion yuan (2024), 10.001 billion yuan (2025E), 10.804 billion yuan (2026E), and 11.299 billion yuan (2027E) [6] - The projected earnings per share (EPS) are: 0.21 yuan (2023), 0.21 yuan (2024), 0.20 yuan (2025E), 0.21 yuan (2026E), and 0.22 yuan (2027E) [6] - The company’s return on equity (ROE) is expected to decline from 9.47% in 2023 to 8.00% in 2025E, before slightly recovering [6]

Core Viewpoint - The wind power sector is expected to see a significant increase in activity starting from 2025, driven by high production rates of wind turbines and components, as well as potential price increases for certain components due to increased bidding in 2024 and pre-installation activities for new energy projects [1] Industry Analysis - The wind power generation curve is well-aligned with the electricity demand curve, suggesting that market-based trading prices will be minimally affected, allowing project owners to increase the proportion of wind power in their new energy developments [1] - Key offshore wind projects are set to commence in 2025, which is anticipated to contribute to demand growth in the long term, supporting sustained growth in domestic installations and ongoing recovery in industry profitability [1]