Huaneng Hydropower(600025) 国金证券·2025-04-25 08:15Investment 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. For 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 for 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 - In 2024, the company achieved a revenue of 24.88 billion yuan and a net profit of 8.3 billion yuan, with a planned cash dividend of 0.20 yuan per share, representing a 43.4% payout ratio [2]. - The projected net profits for 2025, 2026, and 2027 are 8.79 billion yuan, 8.88 billion yuan, and 9.24 billion yuan, respectively [5]. Power Generation - The company's hydropower generation in 2024 was 107.93 billion kWh, a 2.53% increase year-on-year, while Q1 2025 saw a hydropower generation of 19.73 billion kWh, up 30.5% year-on-year [3]. - The company added 1.8 GW of new renewable energy capacity in 2024, with wind and solar generation reaching 4.2 billion kWh and 36.7 billion kWh, respectively [3]. Cost and Pricing Dynamics - 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%, up 3.6 percentage points year-on-year [4].