HUADIAN POWER (01071) saw its stock soar 5.29% during Tuesday's trading session, following the release of its impressive interim results and announcement of a strategic capital injection plan. The surge in stock price reflects investors' positive reaction to the company's financial performance and growth initiatives.
According to the interim results released on August 28, HUADIAN POWER reported a notable 13.15% year-on-year increase in net profit attributable to shareholders, reaching RMB 3.904 billion for the six months ended June 30, 2025. Despite a slight 8.98% decrease in total operating revenue to RMB 59.953 billion, the company's profitability improved significantly. The board proposed an interim dividend of RMB 0.09 per share (before tax), further boosting investor confidence.
Adding to the positive sentiment, HUADIAN POWER announced a strategic move to inject RMB 600 million into Huadian Jinsha River, maintaining its 12% stake in the subsidiary's expanded registered capital of RMB 15 billion. This capital injection, expected to be finalized by September 30, 2025, signals the company's commitment to long-term growth and expansion in the energy sector.
The stock's substantial rise reflects investors' optimism about HUADIAN POWER's improved profitability and strategic investments. As the company continues to navigate challenges in the power generation industry, including reduced power generation and declining electricity prices, its ability to increase profits and make calculated growth-oriented decisions appears to be resonating well with the market.