DATANG POWER (00991) surged nearly 5%, reaching HK$2.55 by the time of writing, with a trading volume of HK$70.41 million. The company recently released its financial results for the first three quarters of 2025.

Huayuan Securities noted that DATANG POWER reported revenue of RMB89.3 billion in the first nine months, down 1.82% year-on-year, while net profit attributable to shareholders rose 51.48% to RMB6.712 billion. In Q3 alone, revenue stood at RMB32.2 billion, a 1.62% decline, but net profit jumped 61.18% to RMB2.133 billion, exceeding market expectations.

The brokerage highlighted that DATANG POWER's Q3 profit increased by RMB1.429 billion year-on-year, up 52.3%, primarily driven by a RMB2.931 billion reduction in operating costs. However, this positive impact was partially offset by an asset impairment loss of RMB1.206 billion. Analysts attributed the lower operating costs to declining coal prices.

Notably, the company conducted a comprehensive review of its power plant assets in Q3, leading to an accumulated impairment loss of RMB1.206 billion. Huayuan Securities suggested that this substantial impairment could alleviate performance pressure in the fourth quarter.