Huatai Securities: In the first half of the year, the approval of coal and electricity projects increased by 152%. The valuation of the future power equipment manufacturing industry is expected to recover.

Huatai Securities research report stated that in the first half of 2025, newly approved coal-fired power generation capacity increased by 152% year-on-year, with a high probability of exceeding 60GW for the full year. The continuous repair of the profitability of thermal power and the ongoing increase in capacity prices have effectively ensured the enthusiasm of owners to invest and the execution of orders. The current valuation of power generation companies may reflect market concerns about the difficulty of achieving stable growth in profits starting from 2028. Huatai Securities predicts that coal-fired power generation may see a high level of approvals from 2025 to 2030, and through the analysis of the profit structure of the three major power generation companies, it believes that their profit structure is also continuously optimizing. With a strong balance sheet, the valuation of the future power generation equipment manufacturing industry is expected to recover.