Investment Rating - The report maintains a "Buy" rating for the company, with expected PE valuations of 9x, 8x, and 7x for the years 2025, 2026, and 2027 respectively [5] Core Insights - In the first half of 2025, the company achieved a revenue of 59.95 billion RMB, a year-on-year decrease of 8.98%, while the net profit attributable to shareholders was 3.90 billion RMB, reflecting a year-on-year increase of 13.15% [2] - The average on-grid electricity price was approximately 517.1 RMB/MWh, with a slight year-on-year decrease of 1.4% [3] - The company is expected to see a rebound in electricity demand in the third quarter of 2025, driven by high temperatures, which will enhance the utilization hours of thermal power assets [4] - The company has a total of 11.966 million kW of approved and under-construction units, which will contribute to long-term growth [4] Financial Performance Summary - For the years 2025 to 2027, the company is projected to achieve net profits of 6.98 billion RMB, 7.29 billion RMB, and 9.32 billion RMB respectively, with EPS of 0.60 RMB, 0.63 RMB, and 0.80 RMB [5] - The company’s sales gross margin improved to 10.72%, an increase of 2.1 percentage points year-on-year [3] - The average coal price for the company decreased by 12.98% year-on-year to 850.74 RMB/ton, leading to a reduction in fuel costs [3] Revenue and Profit Growth Projections - The company’s revenue is expected to grow from 116.223 billion RMB in 2025 to 129.639 billion RMB in 2027, with a compound annual growth rate of approximately 5.5% [10] - The net profit growth rate is projected to be 22.36% in 2026 and 27.83% in 2027, indicating strong profitability potential [10]