Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5]. Core Views - The company's profitability has improved due to a decline in coal prices, with new power generation units contributing to incremental growth [2][3]. - The overall revenue for the first half of 2025 was 13.185 billion yuan, a decrease of 5.83% year-on-year, while the net profit attributable to the parent company was 1.082 billion yuan, an increase of 1.05% year-on-year [1][3]. Financial Performance Summary - In the first half of 2025, the average price of coal at Qinhuangdao Port was 706 yuan per ton, down 20.43%, leading to a decrease in operating costs to 11.043 billion yuan, a decline of 10.18% year-on-year [3]. - The gross profit margin for the first half of 2025 was 16.25%, an increase of 4.06 percentage points year-on-year, while the net profit margin improved to 12.30%, up 1.65 percentage points year-on-year [3]. - The company completed investment income of 498 million yuan in the first half of 2025, a decrease of 27.31% year-on-year [3]. Revenue and Profit Forecast - The forecasted net profit attributable to the parent company for 2025-2027 is 2.178 billion, 2.336 billion, and 2.508 billion yuan, respectively, with corresponding P/E ratios of 7.55, 7.03, and 6.55 [4]. - The projected revenue for 2025 is 31.316 billion yuan, with a growth rate of 4.06% [4]. Market Context - The weighted average price of electricity in Anhui Province for 2025 was 412.97 yuan per megawatt-hour, a decrease of 5.35% year-on-year, indicating a slight decline in overall electricity prices [2]. - The total electricity generation in Anhui Province for the first half of 2025 was 138.35 billion kilowatt-hours, down 7.9% year-on-year, which may affect the company's existing power generation units [2].

Core Viewpoint - The company reported its 2025 H1 financial results, showing a revenue increase but a decline in net profit, indicating challenges in cost management and pricing despite growth in electricity generation [1][3]. Financial Performance - In H1 2025, the company achieved a revenue of 40.973 billion yuan, a year-on-year increase of 9.43%, while the net profit attributable to shareholders was 5.666 billion yuan, a decrease of 3.66% [1]. - For Q2 2025, the revenue was 20.700 billion yuan, up 6.41% year-on-year, with a net profit of 2.529 billion yuan, down 10.40% year-on-year [1]. Electricity Generation - The total electricity generated by operational units in H1 2025 was 115.104 billion kWh, an increase of 15.92% year-on-year, with nuclear power contributing 93.551 billion kWh, up 12.14% [2]. - The average on-grid electricity prices for nuclear and renewable energy were 0.3504 yuan/kWh and 0.3377 yuan/kWh, respectively, reflecting decreases of 1.77 cents and 3.77 cents year-on-year [2]. Cost and Expenses - Operating costs increased by 14.05% year-on-year in H1 2025, outpacing revenue growth, primarily due to the commissioning of new units and increased generation [3]. - Sales, management, R&D, and financial expenses rose by 22.29%, 17.10%, 0.48%, and 1.05% respectively, with sales expenses driven by increased marketing costs for renewable energy [3]. Dividend and Growth Prospects - The company announced its first interim dividend, proposing a cash dividend of 0.02 yuan per share, totaling 411 million yuan, which represents 7.27% of the net profit for H1 2025 [4]. - As of August 10, 2025, the company had 13 nuclear units under construction with a total capacity of 15.138 million kW, indicating strong long-term growth potential [4]. Profit Forecast and Valuation - The company is projected to achieve net profits of 8.799 billion yuan, 9.776 billion yuan, and 10.665 billion yuan for 2025-2027, with year-on-year changes of +0.24%, +11.11%, and +9.09% respectively [4]. - The price-to-earnings ratios for the stock as of August 27, 2025, are estimated to be 21.20, 19.08, and 17.49 for the years 2025, 2026, and 2027 [4].