Huaneng Hydropower(600025) 华泰证券·2025-04-25 11:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.48 RMB [4][7]. Core Views - The company achieved a revenue of 24.882 billion RMB in 2024, a year-on-year increase of 6.05%, and a net profit attributable to shareholders of 8.297 billion RMB, up 8.63% year-on-year [1][6]. - In Q1 2025, the company reported a revenue of 53.85 million RMB, reflecting a year-on-year growth of 21.84%, and a net profit of 15.08 million RMB, which is a significant increase of 41.56% year-on-year [1][3]. - The company is expected to benefit from the integrated development of hydropower, wind power, and solar energy, which is anticipated to enhance long-term value [4][6]. Summary by Sections Financial Performance - The company's electricity generation increased by 4.51% to 1110.24 billion kWh in 2024, driven by favorable water conditions and increased solar capacity [2]. - The average on-grid electricity price (excluding tax) for 2024 is estimated at 0.222 RMB/kWh, a rise of 2 cents compared to the previous year [2]. - The company’s financial expenses decreased by 2.04% year-on-year in 2024 [2]. Q1 2025 Insights - The comprehensive on-grid electricity price (excluding tax) for Q1 2025 is estimated to have decreased by 2 cents to 0.255 RMB/kWh, influenced by market price changes and electricity volume structure [3]. - The company’s electricity generation from lower-priced hydropower stations increased significantly, which may support overall pricing despite anticipated market price declines [3]. Valuation and Forecast - The target price of 11.48 RMB is based on a projected PE ratio of 24.0x for 2025, reflecting a downward adjustment from the previous target of 11.82 RMB [4]. - The forecasted net profit for 2025 is adjusted to 8.608 billion RMB, a decrease of 2.9% from previous estimates [4][6].