Huaneng Hydropower(600025) 国金证券·2025-04-25 06:27Investment Rating - The report maintains a "Buy" rating for the company, with expected earnings per share (EPS) of 0.47, 0.47, and 0.49 for 2025 to 2027, respectively, corresponding to price-to-earnings (PE) ratios of 20, 20, and 19 [5]. Core Insights - The company reported a revenue of 24.88 billion yuan for 2024, a year-on-year increase of 6.1%, and a net profit attributable to shareholders of 8.3 billion yuan, up 8.6% year-on-year. In Q1 2025, revenue reached 5.38 billion yuan, reflecting a 21.8% year-on-year growth, with a net profit of 1.51 billion yuan, up 41.6% year-on-year [2]. - The company's power generation increased by 4.6% in 2024 and 31.2% in Q1 2025, driven by favorable water conditions, increased storage capacity, new unit commissioning, and strong electricity demand [3]. - The average on-grid electricity price in Q1 2024 was approximately 0.255 yuan/kWh, a decrease of about 0.02 yuan/kWh year-on-year, primarily due to improved water conditions and increased renewable energy supply [4]. Summary by Sections Financial Performance - For 2024, the company achieved a revenue of 24.88 billion yuan and a net profit of 8.3 billion yuan, with respective growth rates of 6.1% and 8.6% year-on-year. The Q1 2025 results showed a revenue of 5.38 billion yuan and a net profit of 1.51 billion yuan, marking increases of 21.8% and 41.6% year-on-year [2][4]. - The projected net profits for 2025, 2026, and 2027 are 8.79 billion yuan, 8.88 billion yuan, and 9.24 billion yuan, respectively, with corresponding EPS of 0.47, 0.47, and 0.49 [5]. Power Generation and Capacity - The company's total power generation in 2024 was 107.93 billion kWh, a 2.53% increase year-on-year, with Q1 2025 generation reaching 19.73 billion kWh, up 30.5% year-on-year. The increase was attributed to favorable water conditions in the Lancang River basin and new hydropower units coming online [3]. - In 2024, the company added 1.8 GW of renewable energy capacity, resulting in wind and solar generation of 4.2 billion kWh and 36.7 billion kWh, respectively, with year-on-year growth of 6.9% and 160.4% [3]. Cost and Profitability - The company's operating costs increased by only 13.9% in Q1 2025, despite a 31.2% increase in power generation, leading to a net profit margin of 32.3%, an increase of 3.6 percentage points year-on-year [4].