Strategic Focus - The company aims to align with the national "dual carbon" strategy, focusing on the development of a new power system through a dual-driven strategy of "energy assets" and "energy services" [2] - The company is accelerating its business transformation to adapt to the needs of a market-oriented electricity sector, emphasizing the importance of energy asset management and service expansion [2] Financial Performance - The company's energy service revenue and profit have significantly increased year-on-year due to the continuous development of distributed photovoltaic projects and expansion into energy trading services [3] - The company’s existing wind and thermal power plants have also shown improved performance compared to the previous year [3] Virtual Power Plant (VPP) Business - The VPP business has been developed over 13 years, managing over 20GW of controllable load, with approximately 835MW of verified controllable load in the Jiangsu auxiliary service market, accounting for about 35% of the market [4] - Revenue from the VPP business primarily comes from electricity spot trading, demand-side response, and auxiliary services [5] Energy Storage Role - The company has installed a total of 840.54MW of energy storage, with 800MW on the grid side and 40.54MW on the user side, playing a crucial role in the dual-driven strategy [6] - Energy storage is essential for integrating renewable energy projects and enhancing the value of energy services [6] Key Projects - The JianDe pumped storage power station, with a capacity of 2.4GW, is progressing as planned and is expected to be operational by around 2030, contributing stable profits [7] - The project benefits from its location and existing infrastructure, which reduces construction costs and enhances competitiveness in the electricity market [7] Business Synergy - The company has established a synergistic relationship between energy assets and services, creating a comprehensive energy ecosystem that enhances asset utilization and investment returns [8] - The dual-driven model allows for the rapid acquisition of customers and the provision of tailored energy services, driving value across business lines [8] Market Adaptation - The company is preparing for increased electricity price volatility due to market reforms, with strategies to optimize revenue through a combination of capacity pricing, spot market price differences, and auxiliary services [9] - The VPP is positioned to act as a mediator between distributed resources and the electricity market, capitalizing on the growth of distributed photovoltaic and energy storage installations [9] Future Growth Areas - The company identifies energy asset digitalization and new capital models as key growth areas over the next 3-5 years, aiming to enhance the efficiency of energy asset management [12] - The focus will be on leveraging AI and digital technologies to create a robust energy service ecosystem, establishing a second growth curve for the company [12] Traditional Energy Role - Traditional thermal power generation will continue to serve as a stable revenue source while the company enhances operational efficiency and expands its customer base [13] - The company aims to maintain a competitive edge in the thermal power sector through strategic asset management and customer engagement [13]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong expectation for future returns exceeding the market benchmark by more than 15% over the next 6-12 months [4][14]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 321 million yuan, up 43.15% year-on-year, and net profit at 46 million yuan, up 32.48% year-on-year [1]. - The number of power prediction service stations has rapidly increased to 5,461, maintaining a leading market share in the industry, with a net addition of 1,116 stations compared to the end of 2024 [1]. - The company plans to distribute a cash dividend of 2.30 yuan per 10 shares, reflecting a commitment to shareholder returns [3]. Summary by Sections Financial Performance - For 2025H1, the company achieved a revenue of 321 million yuan and a net profit of 46 million yuan, with Q2 revenue at 176 million yuan, marking a 45.74% year-on-year increase [1]. - The revenue from power prediction products was 205 million yuan, showing a growth of 55.14% year-on-year, although the gross margin decreased by 11.91 percentage points to 61.58% due to a higher proportion of lower-margin equipment sales [1]. Product Development - The company has successfully optimized and promoted its distributed integration terminal products, with a 7.75 percentage point increase in gross margin to 58.44% in the distributed power prediction segment [2]. - The innovative product segment, including power trading products, generated revenue of 16.16 million yuan, a year-on-year increase of 1.53% [3]. Future Projections - The company is projected to achieve net profits of 124 million yuan, 154 million yuan, and 194 million yuan for the years 2025, 2026, and 2027, respectively, with a current price-to-earnings ratio of 57 for 2025 [4][5]. - The report anticipates continued growth in the power prediction service sector, driven by the increasing scale of renewable energy installations in China [4].