Investment points: Cogeneration guarantees hours of power generation. Affected by the two increases in feed-in tariffs in 2011 and the decline in coal prices, the profit of the thermal power industry is clearly improving this year, but due to the decline in the economic growth rate and the decline in the growth rate of electricity demand, the decline in power generation hours is a common problem faced by the industry and is also an important factor affecting industry profits. The company's power generation hours in the third quarter were greatly affected, which is one of the reasons why the company's performance in the second and third quarters fell short of expectations. The fourth quarter and first quarter are the peak periods of operation of thermal power companies. Most of the company's units are thermal power units, and the company's power generation hours will increase significantly from month to month. However, considering the current macroeconomic situation, the probability that coal prices will rise sharply in the next six months is low, the company's performance in the next six months is worth looking forward to. The time is right for Dandong Thermal Power to start production. Unit 1 of the 2×300MW construction project of Dandong Jinshan Thermal Power Co., Ltd. passed the 168-hour full load trial operation on September 21, 2012. Unit 2 passed the 168-hour full load test run on January 9. At this point, the construction of the first phase of the 2×300MW cogeneration unit and supporting heat network project of Dandong Jinshan Thermal Power Co., Ltd. has been completed and officially put into commercial operation. Currently, coal prices have been lowered a lot, and thermal power generation hours are more guaranteed. Dandong Thermal Power is expected to contribute considerable profits. The cost of coal combustion still declined sharply from month to month in 2013, and the 2013 performance is expected to improve significantly from month to month. At present, domestic coal prices are still relatively stable. Judging from port coal prices, coal prices in January are still falling slightly. Considering the expansion of coal production capacity in recent years, it is expected that the supply of coal is still quite adequate. We expect coal prices to be relatively stable in 2013, so it is unlikely that there will be a sharp rise. Based on the current average price of coal in ports for the whole year of 2013, we estimate that the average coal price in 2013 fell 13.81% year on year compared to 2012, exceeding the decline in 2012 (the decline in 2012 was 12.88%). In addition, the company's main coal combustion comes from the Mengdong region. We calculated that coal prices in the Mengdong region found that prices in Kengkou fell later in 2012 compared to 2011, only down 2.89%. If prices maintain current prices in 2013, they are 17.39% lower than in 2012, down 17.39% year on year in 2013, and the decline is impressive. We expect a further significant improvement in the company's 2013 performance compared to 2012. Profit forecasts and investment ratings. We expect the company's earnings per share for 2012-2013 to be 0.47 and 0.71 yuan respectively, and the corresponding price-earnings ratio is 13 and 8 times, respectively. Currently entering the heating season in the north, the company's power generation hours are quite guaranteed. Furthermore, coal prices are at a low level and there is no sign of a sharp rebound. The company's 2013 performance is expected to continue to improve sharply from month to month. Taking into account the comprehensive review of the company's rating, we will give it a “buy” investment rating. Risk warning. Higher coal prices than expected erode company profits; risk of approval of new projects; risk of continued decline in power generation hours.