Core Viewpoint - China Power Construction Corporation reported a net profit attributable to shareholders of 5.426 billion yuan for the first half of the year, a year-on-year decrease of 13.81% [1] Financial Performance - The company's asset-liability ratio stood at 79.86% as of the end of the first half of 2025, with an equity multiplier of 4.97 [1] - Current ratio was recorded at 0.90, and quick ratio at 0.87 [1] - The total amount of new contracts signed in the first half reached 686.699 billion yuan, reflecting a year-on-year growth of 5.83% [1] - This figure represents 49.13% of the annual new contract target of 1,397.8 billion yuan [1] Business Segments - The renewable energy segment showed positive progress, with new energy power business contracts amounting to 431.388 billion yuan, accounting for 62.82% of total new contracts, and a year-on-year increase of 12.27% [1] - Despite a decline in traditional business scale, the company is expected to gradually adjust its business structure [1] - The company maintains stable gross profit margins while reinforcing its traditional infrastructure engineering advantages [1] Future Outlook - The renewable energy business is anticipated to further contribute to performance growth, supporting the establishment of a second growth curve [1] - The company maintains a "buy" rating based on its steady operational performance across various business segments [1]

Investment Rating - The investment rating for China Electric Power Construction (601669.SH) is maintained at "Buy" [1][5][6] Core Views - The company reported a year-on-year revenue growth, with a strong performance in its renewable energy business. However, the net profit attributable to shareholders declined due to increased impairment provisions. The gross margin remained stable, and the company is focusing on building a second growth curve around renewable energy while solidifying its traditional infrastructure business [5][6][7]. Financial Performance Summary - In 2024, the company achieved a revenue of 634.55 billion yuan, representing a year-on-year increase of 4.05%. The net profit attributable to shareholders was 12.01 billion yuan, down 7.21% year-on-year. The gross margin and net margin were 13.19% and 2.50%, respectively, showing slight declines of 0.04 percentage points and 0.31 percentage points year-on-year [6][8]. - The company’s new signed orders totaled 12,706.91 billion yuan in 2024, an increase of 11.19% year-on-year. The energy and power sector saw significant growth, with orders increasing by 23.68% [7][8]. Profit Forecast - The profit forecasts for 2025 to 2027 are as follows: net profit attributable to shareholders is expected to be 14.13 billion yuan in 2025, 15.21 billion yuan in 2026, and 15.95 billion yuan in 2027. The earnings per share (EPS) are projected to be 0.82 yuan, 0.88 yuan, and 0.93 yuan for the respective years [5][8]. Valuation Metrics - The current price-to-earnings (P/E) ratios are projected to be 5.9, 5.5, and 5.2 for 2025, 2026, and 2027, respectively. The price-to-book (P/B) ratio is expected to remain at 0.5 for the next three years [5][8]. Business Outlook - The company is expected to benefit from the ongoing development in the energy and power sector, with its renewable energy initiatives likely to contribute positively to future earnings growth. The traditional business is undergoing structural adjustments due to a shrinking scale [5][6][7].

Investment Rating - The investment rating for China Electric Power Construction (601669.SH) is maintained at "Buy" [5][6] Core Views - The company reported a year-on-year revenue growth, with a strong performance in its renewable energy business. However, the net profit attributable to shareholders decreased due to increased impairment provisions. The company is adjusting its business structure as traditional business scales down, focusing on renewable energy as a second growth curve. The forecast for net profit attributable to shareholders for 2025-2027 is adjusted to 141.3 billion, 152.1 billion, and 159.5 billion yuan respectively, with corresponding EPS of 0.82, 0.88, and 0.93 yuan [5][6][7] Financial Performance - In 2024, the company achieved a revenue of 634.55 billion yuan, a year-on-year increase of 4.05%. The net profit attributable to shareholders was 12.015 billion yuan, a decrease of 7.21%. The gross margin and net margin were 13.19% and 2.50%, respectively, showing slight declines compared to the previous year [6][8] - The company’s total assets reached 1,289.01 billion yuan by the end of 2024, with a debt-to-asset ratio of 78.93% and a current ratio of 0.88 [6][10] Order Growth - The company signed new contracts totaling 12,706.91 billion yuan in 2024, reflecting a year-on-year growth of 11.19%. The energy and power sector saw significant order growth of 23.68% [7][8] - The company secured renewable energy construction indicators of 26.12 million kilowatts, a 15% increase year-on-year, with installed capacity for wind and solar power also showing substantial growth [7][8] Earnings Forecast - The earnings forecast for 2025-2027 indicates a recovery in net profit, with expected growth rates of 17.6% in 2025 and 7.7% in 2026. The P/E ratios for the next three years are projected to be 5.9, 5.5, and 5.2 times, respectively [5][8][10]