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HUANENG POWER(902)
Analysis¡G
Huaneng Power International continues to advance its green and low-carbon transformation. Wind power and photovoltaic installed capacity continue to grow, driving year-on-year increases in new energy electricity generation. In the first half of 2025, newly added grid-connected controllable power generation capacity reached 7,987.31 MW, of which new energy installed capacity exceeded 6,262 MW. As of June 30, 2025, the Group had controllable power generation capacity of 152,992 MW, with low-carbon clean energy (natural gas, solar, wind, hydro, and biomass power) accounting for 39.12%. The Group¡¦s power plants in mainland China are widely distributed across 26 provinces, autonomous regions, and municipalities, and it fully owns an operating power company in Singapore and has invested in one in Pakistan.
In the first half of 2025, the Group achieved operating revenue of RMB 112.032 billion, down 5.7% from RMB 118.806 billion in the same period of 2024. This was mainly due to overall loose supply and demand conditions and rapid growth in national new energy capacity, leading to lower generation from coal-fired units and a year-on-year decline in electricity output. Net profit attributable to shareholders was RMB 9.578 billion, up 23.19% year-on-year and even exceeding the full-year 2024 net profit of RMB 7.26 billion. This was primarily because the Group capitalized on falling fuel prices by strategically coordinating long-term coal contracts and spot purchases to further reduce fuel costs, driving profit growth in the thermal power segment. At the same time, the orderly expansion of new energy capacity has resulted in stable growth in photovoltaic profits.
The explosive growth in demand from data centers, especially AI computing power, will be the core driver strengthening the fundamentals of power stocks. This impact is mainly seen in three dimensions: growth in electricity sales, revaluation of the ¡§ballast stone¡¨ value of thermal power, and accelerated consumption of green electricity. Data centers require 24/7 stable power supply, making thermal power with peak regulation and supply guarantee capabilities indispensable. Meanwhile, as green computing policies advance, data centers will become major customers for new energy absorption. In addition, in power market transactions, data centers have a high willingness to pay premiums for highly reliable power, which helps power companies improve unit utilization hours and maintain stable electricity prices. Huaneng Power International actively responds to the national policy of strengthening capital market development and enhancing investor returns. Its articles of association stipulate a minimum dividend payout ratio of 50%. The current forecasted dividend yield reaches 7.4%, providing strong defensiveness.(I do not hold the above stock.)
Strategy¡G
Buy-in Price: $6.10, Target Price: $6.70, Cut Loss Price: $5.80
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XINYI SOLAR(968)
Analysis¡G
In 2025, Xinyi Optoelectronics reported a net profit attributable to the parent company of 845 million RMB, a year-on-year decrease of 16.2%. The primary reason was the write-down of 2.32 billion RMB for photovoltaic glass and polysilicon production lines. However, excluding this impact, the actual profit was approximately 2.2 billion RMB. Among these, the photovoltaic glass business achieved a gross margin of 14.1%, an improvement of 4.4 percentage points year-on-year, driven mainly by lower raw material costs, technological efficiency gains, and a significant rise in overseas revenue share to 33.5% (an increase of 10.2 percentage points year-on-year), with notable contributions from the North American and Indian markets. The company proactively shut down two inefficient domestic production lines, signaling capacity optimization. New production lines in Indonesia are set to commence operations in 2026, strengthening its high-margin overseas market presence. Additionally, asset impairment cleared historical burdens, enabling the company to navigate industry cycles with a lighter load and continue transitioning toward a higher-quality profit structure. Overseas sales premiums and cost control jointly drove performance, laying the foundation for long-term profitability resilience.
Strategy¡G
Buy-in Price: $3.35, Target Price: $3.86, Cut Loss Price: $3.00
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Great Wall Motor (2333 HK) New Energy Vehicles and Overseas Markets Drive Sales Growth
Buy (Maintain)
Current Price HKD 12.39 (Closing price as at 10 March)
Target Price HKD 17 (+37.2%) Investment SummaryRevenue Growth Amid Transformation While Profits Face PressureAccording to the 2025 annual result forecast of Great Wall Motor, the Company reported total revenue of RMB222.79 billion in the full year (RMB, the same hereafter), up 10.2% yoy. Net profit attributable to shareholders was RMB9.912 billion, down 21.7% yoy. Non-GAAP net profit attributable to the parent company fell 36.5% yoy to RMB6.158 billion. The decline in profit was mainly due to the Company accelerating the build-out of a new channel model that connects directly with users, while also increasing investment in the launch and promotion of new models and technologies as well as brand enhancement, which reduced the Company's profitability. Looking at the fourth quarter alone, the Company recorded net profit attributable to the parent company of RMB1.28 billion, down 43.5% yoy and down 44.4% qoq, mainly due to one-time year-end bonus accruals and delayed tax refunds on scrapped vehicles. Excluding these factors, the Company's operations remained stable. New Energy Vehicles and Overseas Markets Drive Sales Growth, While Product Mix Optimisation Lifts Per-Vehicle RevenueSales volume of Great Wall Motor reached a record high of 1,324 thousand units in 2025, up 7.3% yoy, driven by the dual engines of new energy vehicles and overseas markets. Among them, sales of new energy vehicles reached 404 thousand units, up 25.4% yoy, with the proportion of NEVs expanding by 4.4 percentage points to 30.5%. Overseas sales reached 506 thousand units, up 11.7% yoy, with the overseas sales ratio expanding by 1.5 percentage points to 38.2%. Among the Company's sub-brands, Haval, WEY, Tank, Ora, and pickup recorded sales volume of 759 thousand, 102 thousand, 233 thousand, 48 thousand, and 182 thousand units respectively, up 7.41%/+86.29%/+0.74%/-23.68%/+2.57% yoy respectively. The high-end brand Tank remained stable, while WEY grew significantly, with WEY Alpine achieving over 10,000 monthly deliveries for three consecutive months. With the continuous optimisation of the product sales structure, the average selling price per vehicle rose steadily. In 2025, the Company's ASP rose up 2.7% yoy, or RMB4,400, to RMB168.3 thousand, reflecting further strengthening of the brand. Platform Opens a New Product CycleIn January 2026, Great Wall Motor launched the world's first native AI full-powertrain platform ¡V GWM One. The platform is compatible with five powertrain types: PHEV, HEV, EV, FCEV, and ICE, covering seven vehicle categories including sedan, SUV, pickup, MPV, and sports car. It is equipped with self-developed 6C cells and a 900V architecture. The first flagship six-seat model based on the GWM One platform, the WEY V9X, is set to debut soon. Deepening Globalisation Strategy to Support Long-Term GrowthThe Company has set a sales volume target of 1.8 million units for 2026, including 600 thousand units from overseas markets, equivalent to an increase of 18.6%. We expect the incremental volume to come mainly from the continued roll-out of overseas localised production capacity and the accelerated expansion of overseas dealer networks (currently deployed in 1,500 locations). The Company has established three complete vehicle production bases in Thailand, Brazil, and Russia, and operates multiple KD factories in Pakistan, Vietnam, Tunisia, and other locations. Investment ThesisThe Company has set resolute strategic objectives and clear steps for new energy and high-end-oriented transformation. The roll-out of a series of new models and the deepening of overseas market deployment in this strong product cycle, along with the scale effect emerging after channel improvements, are expected to support the Company's continued growth momentum. Considering latest financial forecast, we revised our target price to HK$17, equivalent to 13.2/9.5/7.6x P/E and 1.5/1.3/1.1x P/B in 2025/2026/2027. We maintain our Buy rating. (Closing price as at 10 March) GWM¡¦s P/E trend 
Source: Wind, Phillip Securities Hong Kong Research RisksNew vehicle sales fall short of expectations
The SUV market dramatically worsens
The progress of new energy vehicle/Pickup is poorer than expectations Financial Data
(Closing price as at 10 March) Download PDF Report
| Recommendation on 13-3-2026 | | Recommendation | Buy (Maintain) | | Price on Recommendation Date | $ 12.390 | | Suggested purchase price | N/A | | Target Price | $ 17.000 |
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