Performance Overview - In the first three quarters of 2025, the company's subsidiaries achieved a total electricity generation of 135.746 billion kWh, a year-on-year increase of 4.15% [1] - The total electricity generation from subsidiaries and joint ventures reached 172.179 billion kWh, reflecting a year-on-year growth of 3.17% [1] - The company's operating revenue was RMB 59.723 billion, a decrease of 4.09% year-on-year [2] - The net profit attributable to shareholders was RMB 8.576 billion, down 14.14% year-on-year; after excluding non-recurring gains, the net profit was RMB 8.180 billion, a decline of 16.05% [2] Operational Metrics - The company completed 15 major overhauls in the first three quarters, with a total overhaul duration of approximately 578 days, which is 28 days less than the previous year [2] - As of September 30, 2025, the company managed 20 units under construction, including 8 units entrusted by the controlling shareholder, with overall project construction progressing steadily [2] Financial Indicators - The company's Return on Equity (ROE) and Return on Assets (ROA) decreased by 1.5 and 0.8 percentage points, respectively, compared to the same period last year, primarily due to a decline in average market electricity prices [2] - The debt-to-asset ratio stood at 60.8% as of September 30, 2025 [2] - The net cash flow from operating activities was RMB 20.792 billion, indicating a stable cash flow situation that supports the company's development [2] Market and Investment Insights - The marketization ratio of the company's managed nuclear power units in Guangdong Province was approximately 31.8% in the first three quarters, showing an increase year-on-year [3] - The average market electricity price has decreased due to overall declines in market transaction prices [3] - The 2026 marketization trading plan for Guangdong Province has been released, with a 5% increase in marketization ratio compared to 2025 and the removal of variable cost compensation for nuclear power [3] Future Outlook - The company plans to conduct 19 major overhauls in 2025, with 3 already completed by October 30, 2025, and expects a reduction in total overhaul days compared to 2024 [3] - The company is actively preparing for project approvals for nuclear power sites, aiming to meet the application conditions for more projects [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 4.70 and HKD 3.69 [6][5]. Core Views - The company's revenue for Q3 2025 was RMB 20.556 billion, a year-on-year decrease of 10.21% but a quarter-on-quarter increase of 7.40%. The net profit attributable to the parent company was RMB 2.624 billion, down 8.81% year-on-year and down 10.32% quarter-on-quarter, but within the expected range [1][2]. - The report highlights that the annual trading price for nuclear power in Guangdong is expected to increase in 2026 due to the cancellation of variable cost compensation, which could enhance profitability [3][5]. - The company is managing 20 nuclear power units under construction, with three expected to be operational by the end of 2025 and in 2026 [4][5]. Summary by Sections Financial Performance - For the first nine months of 2025, the company achieved revenue of RMB 59.723 billion, a year-on-year decrease of 4.09%, and a net profit of RMB 8.576 billion, down 14.14% year-on-year [1][2]. - The total on-grid electricity from the company's nuclear power units increased by 3.17% year-on-year to 1,721.79 billion kWh [2]. Market Outlook - The cancellation of the variable cost compensation mechanism in Guangdong is expected to lead to a year-on-year increase in the trading price of nuclear power, with an estimated profit increase of approximately RMB 209 million for the company [3][5]. - The report anticipates that the average comprehensive electricity price for the company's market-oriented units in Guangdong will increase by about 5 cents per kWh [3]. Construction and Development - The company is progressing steadily with its construction projects, with three units expected to be operational in late 2025 and early 2026 [4][5]. - The company holds significant stakes in several nuclear power projects, with acquisitions still in progress [4]. Profit Forecast and Valuation - The report maintains profit forecasts for the company at RMB 9.788 billion for 2025, RMB 10.789 billion for 2026, and RMB 11.326 billion for 2027 [5][10]. - The estimated PE ratio for 2026 is set at 22.0x, with a target price based on this valuation [5][10].