CICC released a research report stating that DONGFANG ELEC's (01072) current A-share and H-share prices correspond to 2025 and 2026 P/E ratios of 15.8x and 13.1x, and 12.8x/10.4x respectively. Considering the construction of the Yalong River hydropower stations and the accelerated approval of coal-fired units opening up long-term development space for the company, combined with the recovery of the H-share market, the firm maintains "Outperform" ratings for both A-shares and H-shares, raising A-share and H-share target prices by 30% and 67.2% respectively to RMB 22.1 and HK$19.4, corresponding to 18x and 14.5x P/E ratios for this year respectively.

The report indicates that DONGFANG ELEC achieved total operating revenue of RMB 38.151 billion in the first half of the year, up 14.03% year-on-year; net profit reached RMB 1.91 billion, up 12.91% year-on-year. In the second quarter, revenue was RMB 21.603 billion, up 17.38% year-on-year; net profit was RMB 756 million, down 3.79% year-on-year. Due to increased impairment provisions in the second quarter, performance was slightly below the firm's expectations.

DONGFANG ELEC's new effective orders in the first half totaled RMB 65.485 billion, up 16.78% year-on-year. In the clean and efficient energy equipment segment, half-year revenue grew 19.2% year-on-year, with coal power and nuclear power growing 32.6% and 38.7% respectively year-on-year. Coal power gross margin increased 2.7 percentage points year-on-year to 19.1%, which the firm believes is mainly due to low-priced orders being gradually digested last year; the decline in nuclear power gross margin was mainly affected by product delivery structure.

Additionally, the company achieved its first breakthrough in overseas orders for 50MW heavy-duty gas turbines. The firm is optimistic about the company's continued overseas market expansion and maintains unchanged earnings forecasts for DONGFANG ELEC for 2025 and 2026.