Investment Rating - The investment rating for China General Nuclear Power Corporation (CGN) is "Outperform the Market" [6][4]. Core Views - The report highlights that the average cost of inventory is higher than the international trade sales price, leading to increased losses in trading operations. The company's revenue for the first half of 2025 was HKD 1.709 billion, a decrease of 58.4% year-on-year, primarily due to falling uranium prices and reduced international trade delivery volumes. The net loss attributable to shareholders was HKD 68 million, a year-on-year increase of 159.7% [1][9]. - Uranium production met expectations, with a total extraction of 1,351 tons of uranium (tU) in the first half of 2025, a 1.2% increase year-on-year. However, the international trade business experienced a price inversion due to the company's inventory accounting method [2][11]. - The report expresses optimism about future uranium price trends, citing a tightening supply-demand situation and expectations of a rebound in uranium prices supported by global nuclear power recovery [3][12]. Summary by Sections Financial Performance - In the first half of 2025, the company reported a revenue of HKD 1.709 billion, down 58.4% year-on-year, and a net loss of HKD 68 million, reflecting a significant decline in trading profits due to high inventory costs [1][9]. - The average production cost for uranium was USD 26.69 per pound U3O8, while the average sales price was USD 71.07 per pound U3O8, leading to losses in the trading segment [2][11]. Market Outlook - The report anticipates a recovery in uranium prices due to a combination of supply constraints and increasing demand from the global nuclear power sector. The new long-term sales agreements are expected to support future revenue growth [3][12][13]. Profit Forecast - The profit forecast has been adjusted downward, with expected net profits for 2025-2027 revised to HKD 480 million, HKD 950 million, and HKD 1.09 billion, respectively. The corresponding year-on-year growth rates are projected at 39%, 99%, and 14.4% [4][5].