Inner Mongolia MengDian HuaNeng Thermal Power Corp Ltd: Financial and Operational Update
Company Overview
Inner Mongolia MengDian HuaNeng Thermal Power Corp Ltd, a utility company based in Huhehaote City, China, operates in the sector of Independent Power and Renewable Electricity Producers. The company is listed on the Shanghai Stock Exchange and trades in CNH currency. As of July 30, 2025, the company’s close price was 4.03 CNH, with a market capitalization of 28,520,000,000 CNH. The company’s price-to-earnings ratio stood at 12.568, with a 52-week high of 5.25 CNH on October 7, 2024, and a low of 3.7 CNH on March 2, 2025.
Financial Performance
In the first half of 2025, Inner Mongolia MengDian HuaNeng reported a net profit of 15.57 billion CNH, marking a decrease of 11.91% compared to the same period last year. The company’s revenue for the period was 98.27 billion CNH, down 8.75% year-over-year. The adjusted net profit was 15.56 billion CNH, reflecting a 9.02% decrease. The basic earnings per share were 0.23 CNH, with a weighted average return on net assets of 8.91%.
Operational Highlights
The company’s electricity generation for the first half of 2025 was 243.24 billion kWh, a 14.58% decrease from the previous year. The dispatched electricity amounted to 225.21 billion kWh, also down by 14.58%. The decline in thermal power generation, which accounted for 223.76 billion kWh, was primarily due to increased dispatching of thermal power units to accommodate the rise in regional renewable energy generation.
The average selling price of electricity was 356.49 CNH per MWh (excluding tax), an increase of 16.12 CNH per MWh from the previous year, representing a 4.74% rise.
Carbon Emission Strategy
In response to investor inquiries about carbon emission costs, the company stated that it cannot directly offset carbon emission rights with green certificates from new renewable energy projects like the Qianlong Flag Wind Farm and Beifang Dulong. However, the company plans to reduce carbon emissions by optimizing the operation of its power units and improving equipment efficiency and reliability.
Coal Production
The company is progressing with its coal production, aiming for an annual capacity of 1.5 million tons. The first half of 2025 saw coal production of 694.80 million tons. The company is accelerating the transition to the second mining area to address the decline in coal calorific value observed in the initial mining area.
Market and Institutional Analysis
On July 31, 2025, CITIC Securities upgraded the company’s rating to “Outperform Industry,” with a target price not exceeding 4.5 CNH. The forecast for the company’s net profit in 2025 is 25.44 billion CNH. Over the past six months, six institutions have published reports on the company, with net profit predictions ranging from 22.29 billion to 25.44 billion CNH for 2025.
Conclusion
Inner Mongolia MengDian HuaNeng Thermal Power Corp Ltd continues to navigate challenges in carbon emissions and coal production while maintaining a focus on optimizing operations and expanding renewable energy capabilities. The company’s strategic initiatives aim to enhance its market position and financial performance in the evolving energy sector.